By Marcus Leach
Thomas Cook have reached an agreement with their banking group to amend the terms of their existing bank facilities to increase financial flexibility for the Group.
In addition, they have signed a new short-term committed bank facility to provide an additional £100m of headroom around the seasonal cash low point at the end of December this year.
The existing credit facilities comprise a £150m amortising term loan and a £850m revolving credit facility which mature in May 2014. The terms have been amended to provide additional headroom for the Group as outlined below:
• Leverage covenant: adjusted net debt must be less than or equal to 4.5 times leverage EBITDAR at the end of December 2011 and less than or equal to 4.25 times leverage EBITDAR thereafter;
• Fixed charge cover covenant: fixed charge EBITDAR must be greater than or equal to 1.75 times fixed charges.
“We are pleased to have the full support of our banking group in amending the financial covenants so as to provide greater financial flexibility, particularly around the seasonal cash low point at the end of December,” Paul Hollingworth, Group CFO commented.
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