Smiths City Group says ANZ Bank will provide finance from Thursday, which the company says will reduce its interest costs.
Late last year, the Christchurch-based retailer said it would terminate its relationship with its financier Fisher & Paykel Finance and shift to a major bank.
It says ANZ will provide a senior revolving secured facility of $75 million which will cost it about 6% compared with more than 10% under Fisher & Paykel Finance.
Smith City will incur a break fee of $1.4 million for terminating its facility with Fisher & Paykel Finance. The new deal means the retailer will also have to inject $6 million of its own money.
