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Myer refinances $600 million debt

Jun 24, 2015

Troubled department store Myer has refinanced its $600 million debt arrangements with financiers.

Chief executive Richard Umbers said the decision to refinance reflected an opportunity to secure more favourable pricing on improved terms for an extended period.

“The successful outcome of refinancing discussions with our banking syndicate delivers a number of benefits to Myer and we are encouraged by the level of support we have received,” he said in a statement to the ASX.

The deal comprises three tranches of financing ($145 million, $180 million and $275 million) with terms of two to four years.

Myer is undertaking a major strategic review under Umbers, who took over as CEO in March.

In May, the retailer announced it was axing about 80 jobs at its Melbourne head office after forecasting its full-year profit would be up to 24 per cent lower than last year’s result. There has been speculation the review could lead to store closures.

– with AAP

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