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Investing.com -- ASOS PLC (LON:ASOS) stock jumped 3.9% on Thursday after the online fashion retailer announced a successful refinancing that provides improved financial terms and additional liquidity headroom.
The London-based company has secured a new five-year financing package comprising a £150 million term loan and an £87.5 million Delayed Draw Term Loan with a syndicate of private lenders, maturing in November 2030. The refinancing replaces ASOS’s previous Asset Backed Loan facility.
According to the company, the new arrangement offers £87.5 million in additional liquidity headroom, increased financial flexibility, and approximately £5 million reduction in annual cash interest costs compared to its previous Bantry Bay facility.
The refinancing comes as ASOS enters what it describes as "the final phase of its multi-year turnaround" following strategic progress in building "sustainably profitable and resilient foundations."
"I’m pleased to announce the further strengthening of our balance sheet and financial flexibility through this strategic refinancing," said Aaron Izzard, ASOS CFO. "As well as offering improved financial terms, it better positions us to deliver on the final phase of our turnaround strategy and growth plans with greater confidence and resilience."
The new facilities effectively replace the company’s existing £75 million Revolving Credit Facility and £50 million accordion facilities that were due in 2027 and had no availability in the prior reporting period.
Founded in 2000, ASOS serves 18 million active customers across more than 200 markets with its own brands including ASOS DESIGN, ARRANGE, COLLUSION, Topshop, and Topman, alongside products from partner brands.