Shares of Wakefield-based greeting card and gift retailer Card Factory rose as much as 30% on Thursday after it announced it agreed terms on a refinancing with its current banking syndicate that runs through September 2025. 

“Card Factory has made good progress in using its positive cash flows to reduce overall debt,” said the Wakefield firm.

“Consequently, it has agreed revised terms on reduced facilities of £150 million (previously £225 million).

“As at 31 March 2022, the group’s net debt (excluding lease liabilities) was £79 million.”

The revised facilities include a £100 million revolving credit facility (RCF), a £11.25 million term loan facility to be repaid between January 31, 2023 and January 31, 2024, and a £18.75m term loan facility to be repaid in six quarterly instalments of £1.75 million from April 2024 and a final bullet repayment of the balance in September 2025.

“The best efforts commitment given by Card Factory to its banks, to raise net equity proceeds of £70m by 30 July 2022 has been removed from the revised facilities,” said the company.

“The board has no current intention of completing an equity raise.”

Card Factory CEO Darcy Willson-Rymer said: “I am pleased to be able to announce the successful completion of Card Factory’s refinancing today.

“This is an important milestone for our business, ensuring we have the financial foundations in place to capitalise on the opportunities ahead.

“We are now well positioned to continue our strategic transition from a store-led card retailer to a market leading omnichannel retailer of cards and gifts. 

“I look forward to updating you on our progress at our full year results next month.”