Headline terms for refinancing agreed by listed retailer

High street greeting cards and gifts business, Card Factory says it has managed to agreed headline terms for refinancing of the Group with its current syndicate of commercial lending banks.

The Wakefield-based firm, which has been contending with the trading impacts of lockdown, also says pending documentation of the revised facility terms, the syndicate has extended waivers until the end of May to stave off anticipated covenant breaches. With the news resulting in an increase of 8% in the firm’s share value as of 8.45am, bringing it back to pre-pandemic levels at around 84.6 pence per share.

The extension “takes account of the company’s cash flow projections, subject to certain conditions.”

Card Factory has repeatedly negotiated several waivers from its lenders over the last few months.

It adds that a further update will be issued on the refinancing in due course.

In a trading update also issued today, the business says its performance following the reopening of stores in England and Wales from 12 April 2021 “has exceeded its expectations”.

The chain was able to welcome staff and customers back in its stores in Scotland from Monday 26 April, with stores opening in Northern Ireland today.