UPDATE 2-Wetherspoon targets refinancing by next March

* Says bank debt refinancing is preferred option

* Does not rule out rights issue

* Q1 comparable sales up 0.3 pct

* Confident about FY prospects

* Shares up 2.6 pct

(Adds FD, analyst comment, shares)

By Matt Scuffham

LONDON, Nov 4 (Reuters) - British pubs group JD Wetherspoon (JDW.L: Quote, Profile, Research) said it expected to complete a refinancing of its bank debt by next March but had not ruled out the possibility of a rights issue after reporting slowing sales growth on Wednesday.

Finance Director Keith Down said the company, which has 738 pubs across Britain, would start formal discussions with its lenders by the end of 2009 over the refinancing of a 435 million pound ($716.5 million) facility due to expire in December 2010.