The fashion firm said the new agreement extends the revolving credit facility (RCF) maturity to November 2023 and amends the covenants.
The company said the new arrangements ensure the group has the necessary cash and liquidity to continue the delivery of its transformation plan.
The new RCF of £90mln will reduce to £80mln in January 2022 and replaces a previous RCF of £108mln maturing in September 2022 and a restricted RCF of £25mln maturing in January 2022.
“This is a positive signal that the group’s existing lenders remain supportive and, combined with its net cash position of £66.7m as at 30 January 2021, it provides significant liquidity and headroom to support further progress on the transformation plan,” said Liberum Capital Markets, Ted Baker’s house broker.
“This good news follows yesterday’s update that the prelims (now 10th June) will report results in line with consensus expectations and that management reiterates the FY23 targets as set out at the FY20 prelims. The past year has been one of significant progress and as the roadmap out of lockdown continues, TED’s refreshed offer and the prospect of a buoyant occasion wear market this A/W [autumn/winter] could prove very timely,” the broker added.
Liberum has a target price of 225p for Ted Baker.
Shares in Ted Baker were down 3.7% at 173.4p in lunchtime trading.