Struggling luxury goods group Waterford Wedgwood has negotiated new borrowing facilities in euros and dollars of €210 million and $30 million respectively.

The funding, arranged through British group Burdale Financial, a subsidiary of US group Wachovia, was revealed in a filing to the US Securities and Exchange Commission.

The filing on September 30th reported that the company had, on the same day, entered an agreement through Burdale. It said the money would be used to repay existing debt and to provide the group with general corporate and working capital.

The group is paying 2.5 percentage points over the London interbank offered rate (LIBOR) for the "senior facility" - the €210 million element of the funding.

The $30 million "senior tranche B loan" will attract interest at LIBOR plus 6.5 percentage points.

The company drew down €138.9 million of the facility on the same day it was arranged and used it to repay in full its €88 million debt under an existing amended revolving credit facility agreement, €25.7 million of secured senior notes and a further €25.2 million owing under the Rosenthal Facilities.

The new financing comes just a month after Moody's downgraded the rating on the group's senior debt from B1 to B3 and the rating on a €166 million bond issued late last year to Caa2, a move that suggested the borrowings carried a very high risk for the lenders.

The group has spent the last year concentrating on restructuring its finances as it continues to encounter difficulties in growing sales despite the economic upturn.

This included the bond offering, a €35.3 million rights issue and restructured bank arrangements.

The company also sold its US All-Clad cookware unit, using the net proceeds of almost €180 million to pay down debt.

The Burdale organised package will have to be repaid over periods from three to just over four years. Burdale is a specialist in asset-based lending.