B&M secures £450m funding agreement
B&M has completed a refinancing of its banking facilities, securing £450m of commitments provided by a syndicate of seven banks.
The funding is split halfway between a £225m term loan and a £225m revolving credit facility, to be paid within five years. Two additional one-year extension options are also available subject to agreement with the syndicate.
B&M says the two loans will fully cover its anticipated bank borrowing requirements. The arrangements replace the existing £300m term loan and £155m revolving credit facility which were expected to be fully paid by April 2025.
The retailer saw a successful third quarter of the 2023 financial year. In the 13-week period to December 24, the retailer saw a growth in revenue of 12.3% on a year-on-year basis to £1.56bn.
Crediting its position as a discount retailer, B&M said it had seen strong performance across all of its UK categories, with the retailer expecting its earnings for the year to be in the range of £560m to £580m, ahead of analysts’ estimates of £557m.