JJB Sports has announced details of its refinancing following its Company Voluntary Agreement which it completed last week.
Bank of Scotland has provided JJB Sports with a £25 million revolving working capital facility which terminates on September 30 2010.
Barclays has provided JJB Sports with a £25 million short term loan which is repayable in full on August 31.
The retailer said it intended to pay the Barclays loan back with the money received from the sale of its fitness business to Dave Whelan earlier this year.
“The successful implementation of our CVA last week and the move to our new financing arrangements today are major milestones in securing JJB’s longer term future.”
JJB executive chairman Sir David Jones
JJB Sports said it had drawn down the new £50m facilities provided by Bank of Scotland and Barclays Bank to refinance its existing facilities with those banks and repay in full its short term loan with Kaupthing Singer & Friedlander, the Icelandic bank which is in administration.
As part of the refinancing, the standstill arrangements which have been in place since December between the company and its three lenders have been terminated.
JJB executive chairman Sir David Jones said: “We are extremely pleased to have moved to the new financing arrangements with our lenders today, and to have terminated the standstill arrangements, under which we have been operating since December 2008. The successful implementation of our CVA last week and the move to our new financing arrangements today are major milestones in securing JJB’s longer term future.”