DFS Furniture PLC, the Doncaster, England-based retailer, has successfully secured new credit facilities worth £250 million on Thursday. This financial move consists of a £200 million revolving credit facility (RCF) and a £50 million issue of US private placement (USPP) notes, which together replace the company's existing £215 million RCF.
Agreed upon with DFS's existing banking partners, the new £200 million RCF is set to mature in September 2027. The terms of this facility are consistent with those of the previous £215 million facility and the new £50 million USPP notes. The agreement also includes an option to extend the maturity by a further 16 months, subject to lenders' agreement.
The USPP notes are scheduled to mature in two parts: £25 million in September 2028 and another £25 million in September 2030.
John Fallon, DFS's chief financial officer, emphasized the significance of this financial restructuring. "The successful renewal of our lending facilities is a strong positive endorsement of the confidence the group maintains with our long-term banking partners and the wider credit market," Fallon said. He added that this move provides additional liquidity over the longer term as well as flexibility to pursue all strategic objectives.
DFS's stock price was reported at 111.52 pence on Thursday afternoon in London, marking a 1.0% increase on the day. However, over a 12-month period, the company's stock price has seen a decline of 14%.
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