Barnes & Noble has reached an agreement with a group of lenders that the retailer said will lower its annual interest costs and give it more financial flexibility. The amended $1 billion revolving credit facility also extends the previous maturity date from September 29, 2013 to April 29, 2016.

Beginning in fiscal 2012, B&N expects lower interest costs and reduced amortization of deferred financing fees to reduce interest expense by $10.6 million annually. The company finished the fiscal year ended April 30, 2011 with $313 million of outstanding borrowings under the facility. “Amending our revolving credit facility enables us to lower our anticipated cost of capital and enhance our financial flexibility as we continue to transform the company and execute our strategic plan,” said Joseph Lombardi, chief financial officer of B&N.