7th Sep 2020 10:40
(Alliance News) - Elementis PLC on Monday said the relaxation of its banking covenant, agreed in the first quarter of the year, has now been extended.
The speciality chemicals company obtained a relaxation of its ratio of net debt to earnings before interest, tax, depreciation, and amortisation to 3.75 times in the first quarter as part of its Covid-19 response.
This relaxation now extends to include two testing points in 2021 - June 30 and December 31 - with the arrangement costs being "immaterial".
Elementis said its July and August trading was consistent with trends outlined in its 2020 interim results, published on July 28, and it is on track to achieve a significant net debt reduction in the second half of 2020.
The firm will publish a third quarter trading update October 28.
Shares in Elementis were flat at 72.85 pence in London on Monday morning.
By Anna Farley; [email protected]
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