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WH Smith has completed a £400m bank refinancing to support the group’s growing travel retail division.
The existing £363m lending facilities, consisting of a £250m revolving credit facility (RCF) and a £113m term loan have been cancelled and repaid.
WH Smith drew down on the new £400m RCF - which is a sustainability linked loan finance facility - to make the repayment.
The new RCF is for a five-year term with two uncommitted extension options of one year each, which would, subject to lender approval, extend the tenor of the facility to six or seven years, if exercised.
A syndicate of banks provided the refinancing: Barclays, BNP Paribas, Citi Commercial Bank, Fifth Third, HSBC, JP Morgan, PNC, Santander and SEB.
WH Smith chief financial officer Robert Moorhead said: “We are delighted to complete this refinancing. The new facilities, which are on improved terms, support our strategic ambitions to grow our global travel retail business.
“We look forward to working with our banks to deliver the significant growth opportunities in our global travel retail markets.”
Last month, WH Smith lifted its annual forecasts thanks to the booming travel business and an expected bumper peak summer season.
Total travel revenues in the 13 weeks to 27 May soared by 31% year on year, with like-for-like growth of 18%.
Morning update
The FTSE 100 nudged 0.2% higher to 7,610.88pts this morning.
Shares in WH Smith slipped 0.2% to 1,643p, while elsewhere other fallers included Deliveroo, down 3.3% to 101.8p, Hotel Chocolat, down 2.1% to 150.3p, Glanbia, down 1.3% to €13.38, and Cranswick, down 1.2% to 3,282.1p.
Early risers included Naked Wines, up 2.9% to 119.8p, Kerry Group, up 2.5% to €89.68, and Science in Sport, up 1.8% to 14.5p.
Yesterday in the City
The FTSE 100 edged up 0.3% to 7,594.78pts yesterday.
It remains quiet on the markets for fmcg but risers included THG, up 6.2% to 68p, and Fever-Tree, up 2.1% to 1,324p, while losers included Hotel Chocolat, down 3.8% to 154p, and McBride, down 2.6% to 26.5p.
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