Paperchase has secured a £50 million refinancing package to boost growth of the stationary and greeting cards company.

The retailer intends to use the investment to aid its growth ambitions in the UK and internationally.

The financing package includes a £32 million six-year term loan from Permira Credit Solutions II, as well as £18 million of capex, revolving credit and ancillary facilities from Lloyds Bank Commercial Banking.

In 2014 it was confirmed that Paperchase's private equity owner Primary Capital, which bought the business in 2010 after the collapse of parent firm Borders, had hired PricewaterhouseCoopers and Financo to undertake a strategic review of the business ahead of a potential sale. Primary Capital will continue to own the retailer following the refinancing package.

Paperchase recently announced a 33% increase in profit for its year ending January 2015, with EBITDA up to £9.6 million and total sales up 7% to £128 million. Its eCommerce sales increased 42% and the retailer is expecting another strong year with current trading figures ahead of expectations.

Over the last 12 months, the retailer launched its loyalty programme, Treat Me, which is on track for one million members in the first six months since the UK launch this summer. Earlier this year, Paperchase also launched a dedicated French language website.

Meanwhile, Paperchase launched in Canada and the US and added another 13 stores to its UK portfolio. It also expects to open another five stores before the end of its financial year.

Timothy Melgund, CEO, said: "We are delighted to have agreed this arrangement with two very well known funders. The debt will enable us to further build on the momentum in the business and continue to deliver our ambitious growth plans."

Dan Hatcher at Permira Debt Managers, added: "We have long admired Paperchase's clear leadership in its market and its dedication to innovation and growth year after year. We are delighted to be part of that story with our European direct lending fund providing substantial growth capital to support the company’s ambitious plans."

Chris Birt, Director at Lloyds Bank Commercial Banking, said: "Having already built a clear identity and market share in both the UK and North America, Paperchase is now set to further develop its presence globally. The company’s impressive performance in recent years is testament to its ambitious management team and the catalytic qualities of private equity investment. This refinancing demonstrates our confidence in the business’ future potential as it builds on a flourishing online offering and some exciting new opportunities abroad."