Retailer WHSmith has successfully completed the refinancing of its existing £363m lending facilities, according to an update provided by the company.
The previous lending facilities, which included a £250m revolving credit facility (RCF) and a £113m term loan, have been cancelled and repaid. The repayment has been funded by drawings under new facilities, including a £400m RCF that falls under the category of a sustainability-linked loan finance facility.
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New revolving credit facility with extended options
The newly established revolving credit facility (RCF) has a five-year term and offers two uncommitted extension options, each for a year. If approved by the lenders, the extensions would allow the new RCF to have a tenor of either six or seven years.
Syndicate of banks providing the new facility
The syndicate of banks responsible for providing the new revolving credit facility includes Barclays, BNP Paribas, Citi Commercial Bank, Fifth Third, HSBC, JP Morgan, PNC, Santander and SEB.
Positive outlook and growth opportunities
WHSmith Group’s chief financial officer and chief operating officer Robert Moorhead expressed delight in completing the refinancing. He stated that the new facilities, which come with improved terms, will support the company’s strategic ambitions to expand its global travel retail business.
Moorhead also expressed enthusiasm about collaborating with the banks to seize significant growth opportunities in the global travel retail markets.
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By GlobalDataStrong performance and improved expectations
In the previous month, WHSmith reported a strong performance in its travel markets, with a 31% increase in total travel revenue for the 13 weeks leading up to 27 May, compared to the previous year.
The company’s bosses also noted that expectations for the full financial year have improved since the group announced its projections on 20 April.
