29th Apr 2020 10:30
(Alliance News) - Trainline PLC on Wednesday said its lenders have agreed to waive the financial covenant on its GBP350 million revolving credit facility until August 2021.
The online rail and coach travel platform said the waiver agreement is intended "to support the business through the Covid-19 pandemic and the related impact on trading".
The covenant, which is tested semi-annually, requires Trainline to have a next debt position of no more than 3.75 times adjusted earnings before interest, tax, depreciation and amortisation for the 12 months before testing.
Trainline has taken other steps to shrink its monthly cash outflow amid the pandemic to between around GBP8 million to GBP9 million and is aiming for liquidity headroom of approximately GBP150 million by the end of May.
"Today's announcement underlines the group's confidence that it can operate through an extended downturn period if required," said Trainline.
The company will post its annual results for its financial year ended February 29 on May 7.
Shares in Trainline were up 3.0% at 368.80 pence in London on Wednesday morning.
By Anna Farley; [email protected]
Copyright 2020 Alliance News Limited. All Rights Reserved.
Related Shares:
Trainline