Boohoo Group PLC (AIM:DEBS) said it has secured a new £175 million borrowing facility to use over the next three years, increasing its bank arrangements from its previous £125 million of credit capacity.
The new management team of the online retailer, which trades as Debenhams Group, said it replaced the previous lending facility more than 12 months ahead of its maturity date.
In doing so, it gains "significantly enhanced financial flexibility, enabling the group to deliver its new multi-year turnaround strategy", investors were told.
Interest is set at 7.3% above the Bank of England base rate, which is currently 4%, so 11.3%. A consortium of lenders is led by an arm of US private equity firm TPG.
The previous £125 million facility was arranged as part of a £222 million refinancing in October 2024, at a cost of compounded SONIA plus a margin of around 400 basis points, with SONIA typically tracking slightly below the base rate, so currently would be around 3.9% plus 4%, so 7.9%.
Chief executive Dan Finley said: "We have put in place a new facility, 12 months early, with strong lenders, that aligns and supports our new strategy - supercharging Debenhams and turning around our Youth fashion brands. This follows a comprehensive and competitive review of the market."
Shares in Boohoo rose 6.9% to 14.9p in early trading.
** Update: Adds details, including share price **