UK high street sportswear chain Sports Direct says it is likely to seek a deal to extend its revolving credit facility (RCF) to GBP1bn (US$1.3bn) after entering into a deal to borrow up to GBP907.5m.

In an announcement yesterday (21 November), the company, which is owned by business tycoon Mike Ashley, said it has entered into a new RCF, which replaces its existing facility and is valid for four years, with a one year extension option.

However, due to what it called its "ongoing high street elevation strategy", Sports Direct said it is likely it will seek via an accordion arrangement to increase the facility to reach GBP1bn.

The move follows the news earlier this month that the company is developing a new retail chain selling a range of products from fashion and homeware to DIY and electrics.

BrandsMax, which pledges to sell "the brands you love for less", is thought to be a bid by Ashley to win trade from TKMaxx.

Sports Direct prepares to launch new retail chain