19 Jul 2010 07:00
19th July 2010
DEBENHAMS PLC - REFINANCING
Debenhams plc, the leading department store group, today confirms that it has completed the refinancing of its borrowing facilities, signing a new £650 million credit facility. Demand for the facility was strong giving rise to a healthy level of oversubscription.
The new £650 million senior facility comprises a £250 million term loan and a £400 million revolving credit facility expiring in October 2013 with an option to extend to October 2014. Following a proportion of the debt being hedged into fixed rate finance it is anticipated that the interest cost net of fees will fall from circa 7.0% in the current financial year to circa 4.5% during the first full year of the new facilities.
The new facility will start in April 2011 on the expiry of the existing bank facility. Associated refinancing costs of around £10 million will be capitalised and amortised over the life of the new facility, starting in April 2011.
The Mandated Lead Arrangers and Bookrunners were Barclays Capital, Lloyds Banking Group and Royal Bank of Scotland.
Chris Woodhouse, Finance Director of Debenhams, said:
"We are delighted to have completed the refinancing well in advance of the expiry of the existing facility in April next year. The new facility puts Debenhams on a strong footing for the future, extending the Group's debt maturity horizon beyond three years and, in combination with related hedging, significantly reducing the Group's interest charge for the future.
Debenhams continues to be a highly cash generative and profitable business and we expect to continue our programme of net debt reduction over the coming years."
Enquiries
Investors and analysts
Debenhams plc
Rob Templeman, Chief Executive
Chris Woodhouse, Finance Director 020 7408 3229
Press
Financial Dynamics
Jonathon Brill 020 7269 7170
Billy Clegg 020 7269 7157
Caroline Stewart 020 7269 7227
Notes to Editors
Debenhams is a leading department stores group with a strong presence in key product categories including womenswear, menswear, childrenswear, home and health and beauty. Debenhams is the second largest department store chain in the UK.
Debenhams operates 165 stores in the UK, Republic of Ireland and Denmark, comprising 152 full departments stores and 13 Desire by Debenhams stores, which is a small store concept featuring an edited product range. Debenhams also has 58 international franchise stores in 22 countries. Debenhams' online store is available at www.debenhams.com.
Designers at Debenhams include Ted Baker, Jeff Banks, Jasper Conran, Erickson Beamon, FrostFrench, Henry Holland, Betty Jackson, Ben de Lisi, Julien Macdonald, Melissa Odabash, Jane Packer, Pearce Fionda, Janet Reger, John Rocha, Lisa Stickley, Eric Van Peterson and Matthew Williamson.