Premier Farnell completes £200m refinancing deal

Electronic components supplier Premier Farnell said a deal to refinance its banking debt would give the firm medium term funding security and help it pay off expensive debts.

It has concluded a £200m five year multicurrency revolving facility expiring in October 2016, the company sad.

The facility is with a `club' of Barclays, Bank of America, HSBC, RBS and Santander.

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In addition the company has issued $235m US Private Placement Notes with tenures of between five and 10 years.

"These facilities give the group the medium term funding security to execute its strategy with confidence and provide the opportunity to consider repaying existing, more expensive debt," Premier said.

Recent results have shown the company's market is getting tougher.

Year-on-year sales growth turned negative in the second quarter as the company struggled to replicate the eye-catching growth it enjoyed last year, when customers were restocking following the recession.