WHSmith completes refinancing package

This is the company’s first issue in the USPP market, with the notes having a maturity of seven, 10 and 12 years. It comes alongside a three-year term bank loan of £120m, which could be extended to four and five years depending on lender approval.

WHSmith said the new credit would diversify the group’s sources of debt financing and extend the dates at which it will need to repay its debts ahead of a convertible bond maturing in May next year. This will mean higher financing costs on the brand’s income statement, up to 6.3% from 4.6% on the previous arrangement.

The group’s existing £400m revolving credit facility is retained and matures in June 2029.

The retailer, which has been in negotiations to sell its UK high street arm, has placed its focus on its lucrative travel business in recent years.

“We are pleased to have successfully completed our refinancing, which includes our first US Private Placement and a new bank term loan. The refinancing strengthens our balance sheet, extends our debt maturity profile, and diversifies our capital structure,” said Max Izzard, group chief financial officer at WHSmith.