Premier Foods has agreed a refinancing package which it said would allow it to execute growth plans.

The agreement, which the food manufacturing giant expects to be signed off by the end of March, has extended banking facilities of £1.2bn from December 2013 to June 2016.

The deal with its banks and pension schemes will allow Premier to focus on growing its eight power brands - Ambrosia, Batchelor’s, Bisto, Hovis, Loyd Grossman, Mr Kipling, Oxo and Sharwood’s.

The refinancing will also include an additional loan of £200m which would reduce its interest expense, Premier said.

Premier is expected to reveal more details on the deal when it announces its full-year results later this month.