Frasers Group has replaced its existing £1.65bn financing facilities with a new £3bn term loan and revolving credit facility, giving the retail giant greater financial firepower for its growth ambitions.
The deal, agreed with its banks, has a three-year term with options to extend by up to two years, and includes an accordion option to increase borrowing by a further £500m at the lenders’ discretion.
The Sports Direct owner said the increased facility demonstrates strong support from the banking sector for its “elevation strategy” as it continues to expand its portfolio of retail brands, which already includes House of Fraser, Flannels, Evans Cycles, Game, and USC.
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This moves follows Frasers’ recent decision to withdraw from the acquisition race for Revolution Beauty, the troubled cosmetics brand facing significant financial and governance challenges.
Frasers had participated in the sale process but opted not to proceed with an offer, citing uncertainties.
Following the news, Revolution Beauty said: “The company continues to have constructive engagement with a number of other interested parties.
“Current discussions may be altered or terminated at any time and, accordingly, there can be no certainty that an offer will be made for the company, nor as to the terms on which any offer may be made.
“In parallel, the company is also continuing its positive engagement with its shareholders, including in respect of an equity raise.”
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