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Frasers secures hefty increase in bank borrowing capacity

Shares in Mike Ashley's Frasers Group PLC (LSE:FRAS) are up 0.5% after it arranged a mammoth £3 billion borrowing facility from its banks.

The combination of term loan and revolving credit facility replaces existing financing facilities of £1.65 billion and is valid for three years extension options up to five years and for a further £500 million.

"The group 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," Frasers said.

At its most recent results, in December, the group reported net debt excluding securitisation of £725 million at the end of October, up from £320.8 million at its April year-end, reflecting capital expenditure and strategic investments including Accent Group and Hugo Boss.

Frasers reports final results later this month, on 17 July.

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