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Frasers Group has revealed that it has increased its financing facility from £1.65bn to £3bn in a new term loan and revolving credit facility.
The deal has been agreed with its banking partners and has a three-year term with an option to extend it by up to two years. It also includes an accordion option to increase borrowing by a further £500m at the lenders’ discretion.
The company believes that the increase in the total facility demonstrates “significant support” from the banking industry for the success and strength of the group and its elevation strategy.
As part of this strategy Frasers is continuing to expand its brand portfolio which already consists of House of Fraser, Flannels, Evans Cycles, Game, and USC amongst others.
The move comes after Frasers withdrew from the process of acquiring Revolution Beauty, which put itself up for sale last month. Frasers had participated in the sales process but ultimately decided not to pursue a bid for the company.
Following Fraser’s announcement Revolution Beauty stated: “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.”
Revolution launched a formal sale process at the end of May after receiving a preliminary takeover approach from an unnamed company. It came after a period of strife for the company which saw a 70% slump in share price, accounting probes and boardroom disputes.
