Signet Jewellers has announced that it has reached a deal to renegotiate its $1.5bn (£1bn) asset based lending (ABL) facility in a move to wind up the sale of its credit portfolio.
The new deal extends the group’s ABL facility by nearly two years until July 2026 with terms that reflect the company’s “strengthened” balance sheet and “strong” profitability.
The extension and availability of the ABL will provide the company flexibility to pursue “continued investments” in the business, as well as an additional option to address its2024 maturity obligations for its senior notes and preference shares, if necessary.
Joan Hilson, chief financial and strategy officer, said: “These actions, as well as S&P’s recent upgrade of Signet’s issuer credit rating resulting from our enhanced financial profile, demonstrate the progress we are making with our Inspiring Brilliance growth strategy.
“We have entered into new, long-term receivable purchase agreements, which provide us with improved terms and fully remove consumer credit risk from our balance sheet. These actions further our mission to enable all consumers to Celebrate Life and Express Love with our high-quality jewelry and services.”