Reuters reports that a bank meeting was held at the head office of Sports Direct International (SDI) earlier this month for lenders, to launch syndication for a loan worth more than £700 million (€796m-$945m). The revolving credit facility will replace an unsecured revolving working capital capacity due to mature in September 2018. As reported by Reuters, the deal was put in place in May 2014 for £738 million (€839m-$997m) by a group of 13 banks, with Barclays as a facility agent. It was then increased twice to £788 million (€897m-$1,064m). SDI previously used a shareholder loan of £250 million (€284m-$338m) from Mike Ashley, its majority shareholder, to avoid paying fees on the revolving credit, which would have been charged if more than one third was drawn. The company made cost savings but it decided last year not to renew this arrangement.

Topics