WH Smith has announced completion of the refinancing of its existing £363m lending facilities.
In an update, the Swindon-headquartered retailer explained that its existing £363m lending facilities, consisting of a £250m revolving credit facility (RCF) and a £113m term loan have been cancelled and repaid. This repayment is funded by drawings under new facilities consisting of a £400m RCF, which is a sustainability linked loan finance facility.
The new RCF is for a five year term with two uncommitted extension options of one year each, which would, subject to lender approval, extend the tenor of the new RCF to six or seven years, if exercised.
The new revolving credit facility has been provided by a syndicate of banks including, Barclays, BNP, Paribas, Citi Commercial Bank, Fifth Third, HSBC, JP Morgan, PNC, Santander and SEB.
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Robert Moorhead, group chief financial officer and chief operating officer, commented: "We are delighted to complete this refinancing. The new facilities, which are on improved terms, support our strategic ambitions to grow our global travel retail business. We look forward to working with our banks to deliver the significant growth opportunities in our global travel retail markets."
Last month the retailer reported continued strong performance across its travel markets, with the business' total travel revenue in the 13 weeks to May 27 was up 31% compared to the previous year. Bosses at WH Smith also noted that since the group announced its expectations for the full financial year on April 20, expectations for the full financial year have further improved.
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