16th Jul 2020 10:32
(Alliance News) - Greencore Group PLC on Thursday said it has secured a waiver to its debt covenants for outstanding notes.
The convenience food manufacturer said it has secured a formal agreement with its private placement note holders to waive its net debt-to-EBITDA covenant condition for the September 2020 and March 2021 test periods.
In May, Greencore said it had secured an agreement with its lending syndicate of banks to waive its earning before interest, tax, depreciation and amortisation covenant condition for the September 2020 and March 2021 test periods, adding that it was in advanced talks with its private placement holders in relation to a waiver of the September 2020 and March 2021 leverage covenants for outstanding notes.
At the time, the company said it believed the waivers - along with other measures including cancelling dividend payments and accessing funding under the UK government's Covid Corporate Financing Facility - provided it with "more than sufficient liquidity" for the next twelve months.
As at March 27, Greencore had cash and undrawn committed facilities of GBP267.5 million. Net debt was GBP311.1 million.
The stock was trading 2.6% lower at 118.80 pence each on Thursday morning in London.
By Ife Taiwo; [email protected]
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