Frasers secures £3bn war chest

(Sharecast News) - Mike Ashley's Frasers Group said on Thursday that it has secured a new £3bn loan and credit facility. The highly-acquisitive owner of Sports Direct, Game and Evans Cycles, as well as Frasers, among others, said it had entered into a new term loan and revolving credit facility with its banks.

Valid for three years, with two one-year extension options, it will provide the group with access to borrowings of up to £3bn on aggregate. It also includes an accordion to increase the facility by up to £500m at the lenders' discretion.

The arrangement replaces Frasers' existing facilities of £1.65bn.

Frasers said: "The group believes the substantial increase in the total facility demonstrates significant support from the banking industry of the success and strength of the group and its elevation strategy."

Shares in Frasers were largely flat at 688.75p as at 0830 BST.