Myer completes debt refinancing ahead of pivotal AGM
Department store Myer announced on Monday that it has refinanced its bank facility, which it said conveyed a “strong vote of confidence” in the retailer’s board and strategy ahead of the upcoming annual general meeting (AGM) on November 30.
The maturity date of the revised facility has been extended until February 2021, and gives ample liquidity, relaxed covenant conditions and a stable financial platform to improve the financial performance of the business, Myer chief financial officer Nigel Chadwick said.
Myer chairman Garry Hounsell said the refinancing proves the department store’s ability to deliver on its ‘customer first’ turnaround plan, and will include paying dividends and market standard security – allowing the business to trade its business as normal.
The announcement of the refinancing comes just days before the company’s AGM, when the board is expected to face off against the company’s biggest shareholder, Premier Investments, which has been campaigning to get shareholders to spill the board for nearly a year.
“One can only assume that Premier is trying to take control of Myer under the guise of seeking an ‘independent board’,” Hounsell said in a statement last week.
“Myer shareholders should be alarmed that Premier is trying to get Myer on the cheap for their own benefit.”
Premier Investments chairman Solomon Lew has called for shareholders to deliver a second strike against the department store following a 4.8 per cent year-on-year drop in first quarter sales.
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