2nd Jun 2020 16:25
(Alliance News) - Senior PLC on Tuesday said it its lenders have agreed to relax covenants this year and the aerospace and defence components manufacturer added it is eligible for UK government financial help.
Shares in the company were 8.2% higher at 66.30 pence each in London shortly before market close.
The company has been in talks with its US private placement investors.
"Senior has therefore agreed covenant relaxations with all of its lenders in relation to the June and December 2020 testing periods," Senior explained.
The company affirmed that it has "sufficient liquidity" within its existing loan facilities, ruling out using other funding sources it has at its disposal.
Senior added, however: "Senior has also been confirmed as an eligible issuer under the Bank of England's Covid Corporate Financing Facility. This, combined with the covenant relaxations, provides financial flexibility should it be needed."
By Eric Cunha; [email protected]
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