22nd Oct 2019 14:04
(Alliance News) - Goco Group PLC said Tuesday it has refinanced its debt and signed a new four-year revolving credit facility of GBP105 million.
The price comparison website operator - which owns the Go Compare, WeFlip and MyVoucherCodes brands - has also signed a four-year term loan of GBP15 million.
Both of the facilities have been signed with a group of existing banks and new banks, GoCo said. Both facilities also have an option to be extended for a further year.
Goco said the refinancing provides it with "additional flexibility", increasing its leverage covenant to 3 times adjusted earnings before interest, tax, depreciation and amortization from 2.5 times.
"The agreement secures an increased and more flexible facility, providing the group with capacity to deliver against its strategy of accelerating the customer numbers in its AutoSave business whilst maintaining a disciplined cost of customer acquisition," said Chief Executive Nick Wrighton.
He continued: "I am pleased that we have been able to agree attractive terms with the banks and that they are supportive of our strategy, which we believe will lead to a significantly higher Ebitda margin profile for GoCo Group and be transformative to group earnings by 2022."
Shares in Goco Group were down 1.9% in London on Tuesday at 101.85 pence each.
By Paul McGowan; [email protected]
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