We all know how Frasers loves to snap up a bargain even if that bargain costs it tens of millions of pounds. And it will be able to continue doing this with new lending facilities in place.
Frasers Group owns the Overgate centre in Dundee and has been opening stores for its brands there
On Thursday the sports, luxury and fashion retail giant announced that it has entered into a new Term Loan and Revolving Credit Facility with its banks that replaces its existing financing facilities of £1.65 billion (excluding Frasers Group Financial Services Limited’s securitised loan).
The new facility, which is valid for three years (with two one-year extension options for a total tenor of up to five years), will provide the group with access to borrowings of up to an aggregate amount of £3 billion. The facility includes an option to increase this facility by up to £0.5 billion at the lenders’ discretion.
Frasers said it “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”.
The new deal certainly makes Frasers one of the best positioned UK retail businesses when it comes to bidding for the brands and retailers that are coming onto the market quite regularly, as well as when it comes to buying substantial minority stakes in other fashion businesses.
And it puts the company in a very strong position as it continues to refurbish stores and open new ones, as well helping its ambitious shopping centre/retail parks takeover strategy.
