DFS has secured a new £230m funding package from a banking syndicate led by Lloyds Bank Commercial Banking following its recent stock market listing. The funding includes a £200m term loan that will be used to repay existing debts and a £30m revolving credit facility to provide day to day working capital. HSBC, RBS, Barclays, UBS and Jefferies are the other participants in the banking syndicate.
Bill Barnes, finance director at DFS, says: “The new funding agreement enables us to repay existing debts and thereby reduce our overall cost of borrowing. Our banking partners were supportive throughout the IPO process and have put in place a structure that provides a robust platform for future growth.”
Lloyds Bank’s Mid Market and Acquisition Finance teams provided senior debt facilities to support the transaction.
Richard Townsend, relationship director at Lloyds Bank Commercial Banking, comments: “DFS has been on a steady upward trajectory in recent years, with economic confidence and a recovery in the housing market leading to increased consumer spending. We have worked closely with the management team for several years and are pleased to support them during the company’s next stage of growth.”
