// Ted Baker extends its revolving credit facility with its existing syndicate
// It includes a new £90m facility which will reduce to £80m in January 2022 until maturity in November 2023
// The refinancing arrangement means it now has ”the necessary cash and liquidity to continue the successful delivery of its transformation plan”
Ted Baker has revealed that it has secured an extension to its revolving credit facility with its existing syndicate of lending banks.
Under the new agreement, an existing facility of £108 million maturing in September 2022 and restricted facility of £25 million maturing in January 2022 would be replaced by a new facility of £90 million.
- Ted Baker signs licence deals and moves into live video shopping
- Ted Baker posts drop in Christmas sales and a £5m Brexit bill
- Ted Baker losses widen as it reveals 950 job cuts since June
The new facility would then reduce to £80 million in January 2022 until maturity in November 2023.
“The amended revolving credit facility includes among other changes amendments to the adjusted EBITDA covenant tests, providing further financial flexibility for the group,” Ted Baker said.
The retailer also said that the refinancing arrangement, along with a “strong net cash position” of £66.7 million at the end of the last financial year on January 30, means it now has ”the necessary cash and liquidity to continue the successful delivery of its transformation plan”.
As part of its transformation plans, Ted Baker will invest £6 million in overhauling its ecommerce site in the next two years.
The digital investment will lead to an expanded global payment gateway, new cloud-based points of sale, digital data capture at store, and same-day click-and-collect options.
The transformation scheme will also see Ted Baker move towards becoming a leaner and more reactive supply chain driven by customer-demand data.
Ted Baker was originally meant to publish its full-year results this week, but yesterday it said this would be delayed until June 10.
The revised date was determined in discussion with BDO, the retailer’s auditor, and is a consequence of disruption caused by Covid on the audit processes.
However, Ted Baker said its full year results would be in line with consensus expectations.