Shares in Boohoo Group PLC (AIM:DEBS) rose 10.5% to 15.4p after the retailer trading as Debenhams completed its refinancing process with a new borrowing facility.
It secured a three-year facility providing funding of up to £175 million from a consortium led by TPG Angelo Gordon, with an interest rate of 7.3% over the UK base rate.
The facility runs to August 2028.
Analysts were not surprised that investors reacted positively.
"With the re-fi complete, boohoo will release its FY25 results before the end of August. Given the recent weakness in the share price ahead of the re-fi, we believe the shares are likely to bounce strongly," said broker Peel Hunt.
Shore Capital analysts said the previous £225 million refinancing deal made in October 2024, which included a £125 million revolving credit facility, had a cost of compounded SONIA plus a margin of around 400 bps.
"Clarity around the group’s progress during the year, including planned expansion of the Debenhams marketplace model, will be key to its outlook and our forecasts, in our view," they added.