GVC revises credit facility terms trading on a more positive outlook
GVC Holdings has moved to restructure terms on its revolving credit facility with existing lenders, allowing for greater flexibility as the FTSE firm navigates global COVID-19 business complexities.
Last March, operating on a ‘worst-case scenario’ basis, whereby the global sports calendar would be suspended until August, GVC governance sanctioned access to a £550 million revolving credit facility, with a view to maintain corporate liquidity across all operating segments.
Following the first full month of lockdown, GVC has moved to a more positive outlook slightly lowering its credit facility to £535 million.
Existing lenders have allowed GVC to amend terms on ‘covenant’ net debt/EBITDA measurements on a trailing 12-month basis. Should GVC withdraw more than 35% of credit capital during a trading quarter (up to 30 September 2021), covenant limits will be set at 6x net debt/EBITDA.
In its update, GVC underlines that it has yet to access any capital related to its credit facility, with the company maintaining £250 million in cash funds, ‘excluding cash in shops, ring-fenced PSP funds and other items which may not be immediately available.’
Updating investors, GVC Group CFO Rob Wood, GVC’s CFO, commented: “Having taken early and decisive actions to mitigate the impact of COVID-19 on our business, we are confident that we can achieve our target of breakeven cash flow per month during this crisis.”
“I am delighted that we have reached an agreement with our key lending banks on this revised RCF which will provide us with further financial flexibility to continue on our path of excellent growth momentum. We remain well placed to take advantage of a range of attractive growth opportunities which we believe will be available to us.”
Source: SBC News
