5th Mar 2021 10:15
(Alliance News) -Â Saga PLC on Friday said said it has agreed funding amendments to provide enough headroom should restrictions on travel continue into the second half of this year.
The Kent-based holiday and insurance provider to over 50s said it has reached agreement to amend covenants on its term loan and revolving credit facilities. It also said an agreement is expected to complete next week for a one-year extension to the debt deferral on its cruise ship facilities.
"Given the backdrop of continued disruption to the Travel business, the actions taken provide sufficient headroom should the period of Travel suspension, which is subject to government guidance, continue well into the second half of the year," Saga said.
Dividends remain restricted while the deferred principal on its cruise ship debt is outstanding and while leverage, excluding cruise, is above 3.0 times.
"The successful conclusion of these discussions is the latest step in reinforcing Saga's financial position, and I would like to thank our funding partners for their ongoing support. We continue to see strong pent-up demand for travel among our customers and remain well placed to deliver on this opportunity when the guidance on international travel changes," said Chief Executive Euan Sutherland.
Shares in Saga were up 1.2% at 404.71 pence in London on Friday.
By Lucy Heming;Â [email protected]
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