ASOS PLC (LSE:ASC) saw its shares climb 3.9% on Thursday after the online fashion group revealed that it had successfully completed a refinancing package that delivers improved terms and boosts liquidity.
The company has arranged a new five-year funding structure that includes a £150 million term loan and an £87.5 million deferred drawdown term loan from a group of private lenders, both due to mature in November 2030. This deal replaces the retailer’s former asset-backed lending facility.
ASOS said the refinancing provides an additional £87.5 million of liquidity, increases financial flexibility, and will trim annual cash interest costs by roughly £5 million compared with the previous Bantry Bay arrangement.
The move comes as the business enters what it calls “the final phase of its multi-year turnaround”, following steady strategic progress in building “sustainably profitable and resilient foundations.”
“I am pleased to announce the further strengthening of our balance sheet and financial flexibility through this strategic refinancing,” said Aaron Izzard, Chief Financial Officer of ASOS. “In addition to providing better financial terms, this positions us better to execute the final phase of our turnaround strategy and growth plans with greater confidence and resilience.”
Under the new agreement, ASOS will effectively retire its existing £75 million revolving credit facility and £50 million accordion facilities, which were due to mature in 2027 and had not been drawn during the previous reporting period.
Founded in 2000, the retailer serves 18 million active customers across more than 200 markets, offering its own labels—such as ASOS DESIGN, ARRANGE, COLLUSION, Topshop and Topman—alongside products from third-party brands.
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