HMV's early completion of refinancing

Music, DVD, games and books retailer HMV said it had completed a refinancing over a year before the expiry of its existing facility.

By The Newsroom

Published 23rd Jul 2010, 20:59 BST

Updated 23rd Jul 2010, 20:59 BST

The 89-year-old group said yesterday it had refinanced a 240m revolving credit facility with its existing group of eight banks.

The new facility expires end-September 2013, with an option to extend to end-September 2014.

The key terms and conditions of the facility remain unchanged, including the covenants and the margin on drawings – LIBOR (London Interbank Offered Rate) plus 2.25 per cent.

HMV said refinancing costs of around 3m will be capitalised and amortised over the life of the new facility.

Last month HMV said its performance in the key Christmas trading period would show sceptical investors its plan to develop a broad-based entertainment brand was working.

Earlier this week Debenhams, Britain's number two department store group, completed a 650m refinancing.

Debenhams Britain