As at 31 July 2020, Kingfisher had three syndicated revolving credit facilities, all undrawn, comprising £250m expiring in May 2021, £225m expiring in March 2022 and £550m expiring in August 2022. In August 2020, the Group completed an extension of c.90% of the £550 million RCF, taking the term to August 2023. These facilities attract an interest cost based on LIBOR, fixed for periods of between one and six months or any other agreed period to expiry. They are available to be drawn down for general corporate purposes, including working capital requirements.
Kingfisher also has two fixed term loans: €50m maturing in September 2021 and £50m maturing in December 2021.
Kingfisher has a €600m term facility with three French banks in support of its operations in France. The loan is guaranteed at 80% by the French State (‘Prêt garanti par l’État’) and is due to mature in May 2021, but is extendable for up to five years. As required under the terms of the loan, the full amount was drawn down on 18 May 2020.
The terms of the committed bank facilities and the GBP term loan require that the ratio of consolidated operating profit, excluding exceptional items, to net interest payable (excluding interest on IFRS 16 lease liabilities) must be no less than 3:1 for the preceding 12 months as at the half year and full year ends. At 31 July 2020, Kingfisher’s ratio was higher than this requirement.
In March 2020, Kingfisher established a Euro Commercial Paper (ECP) programme, allowing it to issue short term commercial paper for periods from one week up to 12 months into the market to provide liquidity. The establishment of this programme enables Kingfisher to participate in the Bank of England’s Covid Corporate Financing Facility (CCFF) if required, as well as access funding through standard commercial paper issuance. The CCFF will remain in place until at least March 2021.
Following the UK Government’s announcement on 17 March 2020, the Group applied for the Bank of England’s CCFF, which was made available to assist UK businesses to bridge COVID-19 related disruption to their cash flows. In May 2020, Kingfisher confirmed its eligibility to access funding under the CCFF. In June 2020, Kingfisher issued £600 million of 11-month commercial paper under the CCFF, which was subsequently redeemed in full in July 2020.
Kingfisher plc has a €2.5bn European Medium Term Note (EMTN) programme in place, which allows it to issue debt in the capital markets. The programme was last formally updated in July 2020 and the Offering Circular can be accessed by clicking here.
Other documents related to the programme include:
In September 2020 a Supplement to the Offering Circular was published to incorporate by reference certain parts of the Company's Half Year Results for the period ending 31 July 2020 and can be accessed by clicking here
In July 2018, following a reverse enquiry, a €50 million Floating Rate Note (FRN) was issued under Kingfisher’s €2.5 billion European Medium Term Note (EMTN) programme. The note matured in July 2020 and was fully repaid.