LONDON (ShareCast) - Sports retailer JJB (LSE: JJB.L - news) has completed its refinancing and terminated the standstill agreement that
was in place with its banks.
The group said it has down its new £50m banking facilities provided by Bank of Scotland and Barclays Bank (NYSE: BCS-P - news) to refinance its existing facilities with those banks and repay in full its short term loan with Kaupthing Singer & Friedlander.
As part of the refinancing, the standstill arrangements, which have been in place since December 2008, between the company and its three lenders have been terminated.
The group said Bank of Scotland has provided £25m revolving working capital facility which terminates on 30 September 2010.
Barclays (LSE: BARC.L - news) has provided a £25m short term loan, which is repayable in full on 31 August 2009. "It is intended that the Barclays facility will be repaid from the deferred consideration to be received in relation to the disposal of the Fitness Clubs business, as referred to in the announcement of 25 March 2009," said the group.
"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," said executive chairman David Jones.
"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," he added.
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