Shares in Myer have risen on news the troubled department store chain has refinanced its $600 million debt arrangements.

Chief executive, Richard Umbers, says the decision to refinance reflected an opportunity to secure more favourable pricing on improved terms for an extended period.

This comes as the retailer undergoes a major restructure and axed about 80 jobs at its Melbourne head office in May.

Investors have welcomed the new debt arrangements, pushing Myer’s share price up 1.87 per cent, or 2.5 cents, to $136.25 at 1150 AEST.

This is well above the broader market, which is trading around 0.2 per cent higher.

OptionsXpress market analyst, Ben Le Brun, says Myer was shoring up its balance sheet.

“Debt is something Myer shareholders are looking at very closely,” he said.

“There’s a suggestion there could be a $300 million equity raising in September when they release their full year earnings numbers.

“So if they are able to refinance $600 million of debt it may relieve any short term pressure on the balance sheet.”

The debt arrangements include a lower interest margin.

Myer now has $180 million due in August 2017 and $145 million and $275 million, two separate payments, due in August 2019.

Umbers was parachuted into the top job in March to oversee a “significant program of change”.

About a fortnight after his appointment the company released a disappointing half year profit and cut its full year profit guidance to between $75 million and $80 million.

The retailer will close its department store at Sydney’s Top Ryde City shopping centre next month and three speciality stores in Melbourne in August.

AAP