Sports product retailer Sports Direct International has secured new finances to help the company move forward, according to a statement released today.
By refinancing its banking arrangements, Sports Direct has secured a new three-year unsecured facility for £220 million through ten banks led by HSBC, Barclays and Handelsbanken.
The facility has the normal associated banking covenants, and the group’s level of borrowing and profitability will have an impact on the level of interest paid.
Based on current debt levels for the group, the interest rate payable is 175 basis points over London Inter-Bank Offer Rate.
Dave Forsey, CEO of Sports Direct, said: “We are delighted to announce the refinancing of the group’s banking arrangements and would like to thank our new banks for their support.
“The facility provides the group with ample funding to pursue its business and strategic objectives.”
Sports Direct also announced today that the Serious Fraud Office has completed its investigation into the company and JJB Sports, with the watchdog not bringing charges against either of the companies.
The investigation, which was in relation to Sports Direct’s approved acquisition of 31 JJB stores last year, also assessed the role of individuals but no-one connected to Sports Direct is currently under investigation.
Sports Direct’s most recent financial statement revealed that total group sales at the company rose 12.1 per cent year-on-year in the 13 weeks to January 23rd, while retail sales increased 13.8 per cent over the same period.
Commenting in February, Forsey said that the group, especially its UK retail division, had started 2011 strongly.