Shares in Victoria PLC (AIM:VCP) rolled 7% higher after the seller of carpets and floor coverings bagged a new £130 million bank borrowing facility and said talks about its upcoming bond maturities are "well advanced and continue to progress positively".
The 'super senior facility', which combines term loans and revolving credit elements, is replacing an existing super senior revolving credit facility that was due to end next February.
This represents "a significant step forward in the company's plan to strengthen its financial position and address its near-term debt maturities", the company said, as it offers "considerably enhanced flexibility" compared to the existing bank arrangements.
There are no maintenance covenants or drawing restrictions, meaning Victoria could draw the entire facility if certain funding conditions and documentation are satisfied.
"The board is very pleased with the pricing, duration, and operational flexibility the new facility offers as it ensures Victoria is well-positioned to meet its future operational and financial objectives."
An update on the upcoming senior secured notes is expected to be provided "shortly".