The facility will replace the company's existing revolving syndicated credit facility and will be cross-guaranteed by all of the principal members of the MFI group.
The company has received clearance from the Pensions Regulator in respect of the new financing arrangements.
Earlier this week, MFI sold French business Hygena Cuisines for£92.6 million. Evolution analyst Nick Bubb said: 'This£150 million banking facility reflects the fact that the recent French sale cleared nearly all MFI's debt and that the pension regulator has not insisted that the proceeds be used to pay off the big pension deficit, as it now has a charge over the asset value of Howden.'
MFI will issue its 2005 preliminary results, an update on its strategic review and current trading on February 28.
MFI chief executive Matthew Ingle said: 'This is good news for MFI. The facility will allow MFI to focus on its turnaround plans for UK retail and the growth of Howden.'
However, Bubb added: 'A lot now depends on just how bad trading is at MFI retail and how convincing the turnaround plans are.'
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