Department store group house of Fraser closed a £250m bond issue yesterday.
House of Fraser said that its bonds, due to be repaid in 2018, have an annual coupon - interest rate – of 8.875% with payouts twice a year. The bonds will be listed on the Luxembourg Stock Exchange.
Cash raised will be used to repay House of Fraser-parent Highland Group Holdings’ outstanding debt, which was £214.5m at the end of the last financial year to January 29.
House of Fraser chairman Don McCarthy said: “We are delighted to have successfully completed the full refinancing of the business.
“This will provide the group with long-term financing and a flexible and stable platform to focus on strengthening our market position as the leading premium department store group in the UK and Ireland.”