Thomas Cook Group PLC New £200m bank facility (8646S)
November 28 2011 - 2:01AM
UK Regulatory
TIDMTCG
RNS Number : 8646S
Thomas Cook Group PLC
28 November 2011
25 November 2011
Thomas Cook Group Plc
Amendment to existing bank facilities and new GBP200m bank
facility signed
Thomas Cook Group is pleased to announce that we have reached
agreement with our banking group to provide the Group with a new
facility that significantly improves the robustness of the Group's
financial position.
Our banks, led by Barclays, HSBC, RBS and UniCredit, have agreed
to provide a new GBP200m facility available until 30 April 2013,
which replaces the GBP100m short-term facility announced on 21
October 2011. In addition, they have agreed a further relaxation of
the financial covenants under the existing facilities. This
provides the Group with much increased headroom to deal with
unexpected events and the effects of an uncertain economic
environment.
As previously announced, the Board is taking steps to reduce the
Group's debt and reach a more appropriate capital structure over
time. The Group will also undertake a strategic review.
The Group will announce its preliminary results for the twelve
months ended 30 September 2011 during the week commencing 12
December 2011.
Sam Weihagen, Group Chief Executive, Thomas Cook Group plc
said:
"I am absolutely delighted that we have reached agreement and I
would like to thank the banks for acting so swiftly. Over the last
few days, we have been overwhelmed by the messages of support from
our holidaymakers, suppliers and partners and I would like to thank
them for their good wishes and our employees for their hard work
and dedication. For over 170 years Thomas Cook has provided
customers across the world with fantastic travel experiences. Today
they can look forward confidently to holidays with us for many
years to come."
Enquiries:
Thomas Cook Group plc Investor Relations +44 (0) 20 7557 6414
Finsbury Faeth Birch +44 (0) 20 7251 3801
Notes to the Editors:
The new GBP200m revolving credit facility recognises the Group's
seasonal working capital patterns. The facility has the benefit of
a limited security package over shares. It will be available to the
Group until 30 April 2013. The initial interest margin over LIBOR
payable on the new facility will be 5% per annum, increasing by
0.50% per annum each quarter. In addition, a commitment fee and, in
certain circumstances, a utilisation fee is payable.
The existing credit facilities comprise a GBP150m amortising
term loan and a GBP850m revolving credit facility which mature in
May 2014. The interest margin on these facilities remains
unchanged.
The banks will be issued warrants to subscribe 42,914,640 new
ordinary shares of the Company (representing 4.9% of the issued
share capital of the Company) exercisable at a strike equal to the
average closing price for Friday 25 November 2011 and Monday 28
November 2011, at any time until 22 May 2015.
In addition, the covenant levels on the existing and new
facilities have been further relaxed as follows:
-- Leverage covenant: the ratio of consolidated adjusted net
debt to leverage EBITDAR must be less than or equal to 5.0x for the
testing period ending in December 2011, 4.75x for the testing
period ending in March 2012 and 4.5x in respect of all subsequent
testing periods
-- Fixed charge cover covenant:the ratio of fixed charges to
fixed charge EBITDAR must be greater than 1.5x.
These relaxed financial covenants will continue to be tested at
the end of each calendar quarter on a rolling twelve month basis.
The revised covenant levels apply until 31 March 2013 at which time
they will revert to the original covenant levels.
The Group has agreed to a number of other additional
restrictions including no new share or business acquisitions, a
limit on capital expenditure and, as previously announced, a
prohibition on dividends and share buy-backs.
The arrangement and participation fees with respect to the new
arrangements will cost circa GBP10m.
In addition to the existing term and revolving facilities the
Group has GBP200m of committed bilateral bonding and guarantee
facilities provided by seven banks that are covered by the new
amended agreement, which is unsecured and principally for consumer
protection.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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