Two Major UK Companies Announce Refinancing

Date posted: September 18th, 2013

The mobile phone giant Carphone Warehouse have announced deals worth £650m and £50m respectively to fund the business that is ongoing.

The big name mobile phone operator managed to seal the fund in the form of two loans, which means that it is now more secure than before, it lent the money from its syndicate lenders which was actually arranged in June as to which it acquired Best Buys 50% of interest.

Bovis’ deal of which they are getting £50m is actually an extension of its current £125m revolving credit facility which it had laid out and agreed in January of this year, which is also when they took out a three year loan totaling a sum of £25m so if you add all of this together and it comes to £200m that the home builder has in place for facilities not to mention that it will have to pay this back eventually.

The two businesses have asked for this extension of finance so that they can continue to run their ongoing businesses. The two together equal a staggering selection of financing agreements that totals £700m.

As talked about before the Carphone Warehouse has had to go looking for finance from different places and has surprisingly managed to seal the target amount in the form of two loans from its list of lenders which helped them buy the 50%interest on Best Buy in its European operations task.

However the extensions do actually expire eventually and then they will not be able to take any more money and put it into the business if they haven’t seen a dramatic increase by that time. The company also has to show that they are using the money wisely in a way which is going to promote their business. The extension that totalled £50m expires on the 15th December 2015, whilst the other deal that was extended for £125m ends in the year 2017 in March.

This is basically like trade credit but for accounting problems that your business has whereby you can borrow the money from sources that you may have and then pay it back a few months or even years later. The time period obviously becomes more flexible with the amount you borrow.

This is a hand investment and move for both the businesses mentioned above because it now means that they can move out in the constant and strategic land market.


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Wednesday, September 18th, 2013 Uncategorized