The $125m (£100.7m) refinancing is an Asset Based Lending (ABL) deal secured on all of the group’s assets in the USA and UK.

The new facility replaces its old revolving credit facilities originally agreed in 2019, and then extended last year.

The firm, which goes by the name Design Group, has also extended its overdraft facility with HSBC.

In a statement, the group said: “The board believes that the new ABL facility, which flexes in line with the receivables in the USA, provides more than sufficient headroom to fund the Group's working capital needs over the period of the facility.”

Chairman Stewart Gilliland commented: “We are pleased to have completed this planned refinancing.  The continued support of our key banking partners is greatly appreciated and shows their confidence in the group's prospects.”

The new arrangement has an initial bank margin of 1.75% to 2.25%, based on average excess availability, plus a 0.1% spread adjustment, based on the US Secured Overnight Financing Rate. This is lower than the margins on its 2019 facilities.   

Design Group will announce its year-end results later this month.

The business has experienced a challenging period and warned of “deteriorated trading” earlier this year. Its product range includes gift packaging, wrap, stationery, and materials for crafts and creative play.