HMV secures refinancing deal

The retailer, which has issued four profit warnings this year, said it had agreed a new loan package with lenders led by Lloyds Banking Group and Royal Bank of Scotland.

The banking syndicate was persuaded to agree the refinancing after HMV last month secured the sale of its Waterstone’s book chain to Russian billionaire Alexander Mamut. It pledged to use the £53m proceeds to cut debt.

The maturity date of the facilities is September 30, 2013, with interest payable at 4 per cent over LIBOR. Exit fees will also be paid.

HMV said the deal will see warrants issued to the lending banks. These will represent 5 per cent of the firm’s total issued share capital when converted into shares after June 30, 2012.

The firm added that current trends in trading remained in line with those reported on May 20.