Frasers Group secures almost £1bn in funding to replace existing loan facility

Frasers Group has refinanced its bank loan facilities to secure nearly £1 billion, the largest funding package to be secured in the British retail sector this year.

The new facility, which is valid for three years, will provide Mike Ashley’s retail empire with access to credit facilities and borrowings up to £930 million, to support its ongoing growth ambitions.

Jointly led by HSBC UK and backed by several other lenders, the deal refinances £913.5m of existing loan facilities and adds £16.5m in new funding. The new facility includes two one-year extension options for a total tenor of up to five years and an accordion option to increase the facility to £1.2 billion.

Chris Wootton, Chief Financial Officer at Frasers Group said that partners like HSBC UK will "allow us to continue with our commitment to the UK high street and retail sector" and the group plans its ongoing elevation strategy for long term growth.

Frasers, which owns brands including Sports Direct, House of Frasers and Flannels, recently announced a leadership reshuffle which would see founder Mike Ashley step away from his role as CEO, with the retail tycoon’s prospective son-in-law Michael Murray to take over in May next year.