FTAdviser.com

Advertising

This is in addition to the £12m in shareholder equity raised in December and May.

The facility will enable the lender to secure long-term stability after it made the decision to suspend all new lending in March this year.

Commercial First said while the refinancing would not mean an immediate return to the market, it did ensure the business could continue to effectively manage its existing £1.6bn portfolio.

Stephen Johnson, sales and marketing director for Commercial First, said: "Clearly there has been significant speculation about the business since we were forced to suspend new lending and restructure the cost base within the business.

"This deal is a significant step forward and with this now in place we can focus all our energies into the management of our portfolio and a return to new lending."

Philip George, managing director of Commercial First, said: "I am delighted, despite the incredibly difficult market conditions we have secured this substantial facility from Lloyds TSB and the continued financial support of our shareholders.

"It is fantastic to see that Lloyds TSB shares our passion and belief in this great company."