Debenhams completes £175m refinancing deal

Debenhams Group has completed a new three-year facility providing access to funding of up to £175m, led by former owner TPG.

The new facility, which extends maturity to August 2028, replaces its previous £125m revolving credit facility originally due to mature in October 2026. 

Executed by the new management team more than 12 months ahead of the original maturity date, it will also provide “significantly enhanced financial flexibility”, enabling Debenhams to continue its turnaround strategy. 

 The new facility is said to be provided by a number of financing parties, led by TPG Angelo Gordon. 

Its interest rate is set at the Bank of England base rate plus 7.3%.

 Dan Finley, CEO of Debenhams Group, said: “We have put in place a new facility, 12 months early, with strong lenders, that aligns and supports our new strategy – supercharging Debenhams and turning around our Youth fashion brands. This follows a comprehensive and competitive review of the market.”

It was first reported that Debenhams was in discussions to refinance up to £175m worth of debt earlier this year.

At the time, a Debenhams Group spokesperson said: “Having become Debenhams Group, we are currently at the early stages of evaluating our financing arrangements. In December we paid back £97m of debt and we are now considering the refinancing of our £125m revolving credit facility, well ahead of its term ending in October 2026.

“Debenhams is back and under a new management team it is right for us to assess the ideal financing structure to underpin our ambitious growth plans.”