B&M refinances bank facilities; £450m commitments

Liverpool-based FTSE 100 firm B&M European Value Retail S.A. said it completed a refinancing of its bank facilities.

“The extended group facilities, provided by a syndicate of seven banks, total £450m of commitments and comprise a £225m term loan and a £225m revolving credit facility (RCF) with a five-year maturity, plus two additional one-year extension options subject to mutual consent with the bank syndicate,” said B&M.

“Together these will fully cover our anticipated bank borrowing requirements and they replace the existing £300m term loan and £155m RCF that were expected to mature in April 2025. 

“The thresholds on the financial covenant ratio and applicable interest margins are equivalent to existing levels but will now reflect and be calculated under IFRS16 accounting conventions.

Due to the applicable terms of the security structure of the group’s borrowings, Heron Foods Limited and Heron Food Group Limited will now also act as guarantors of the group facilities and also the group’s outstanding £400m 2025 senior secured notes, and its £250m 2028 senior secured notes.” 

B&M is based in Liverpool and registered in Luxembourg — but its shares trade in London, where its stock fell about 1%.