Frasers Group secures £3bn credit facility to support rapid growth
Frasers Group has bolstered its financial firepower with a new £3 billion borrowing facility as it continues to pursue its elevation strategy.
Announced early this morning, the new financing package - a mix of term loan and revolving credit facility - replaces the group’s previous £1.65 billion arrangement. The facility is valid for three years, with extension options of up to five years, and includes the potential for a further £500 million.
Shares in the group, founded by retail tycoon Mike Ashley, rose 0.5% following the news.
"The group believes the substantial increase in the total facility demonstrates significant support from the banking industry for the success and strength of the group and its elevation strategy," Frasers said in a statement.
The enlarged facility provides Frasers with increased liquidity as it continues to invest in premium store refurbishments, expand its brand portfolio and push deeper into international markets.
The retail giant, which has stakes in Hugo Boss, Debenhams Group and ASOS, recently pulled out of the bidding process for Revolution Beauty, after the cosmetics retailer told shareholders it had been exploring a possible takeover.
Frasers Group, the owner of Sports Direct and Flannels, confirmed "that it does not intend to make an offer" to buy the business. Revolution Beauty formally put itself up for sale last month after being approached by an unnamed suitor.
