3rd Feb 2021 18:06
(Alliance News) - Whitbread PLC on Wednesday has priced two Green bonds, extended its revolving credit facility and plans to repay its private placement notes.
"This refinancing maintains the group's strong balance sheet and financial flexibility, while at the same time extending the maturity of its debt," the Premier Inn-owner said.
Whitbread has priced the issue of GBP300 million 2.375% Green bonds due May 2027 and GBP250 million 3.0% Green bonds due May 2031.
The firm has also reached an agreement with its relationship banks to extend the final maturity date of its revolving credit facility by one year to September 2023.
The facility size, which is currently GBP950 million, will step down to GBP850 million at December 29, 2021 and to GBP725 million at September 7, 2022. As part of this agreement, the covenant waiver period has been extended by 12 months, meaning the financial covenants will not now be tested until March 2023, at which point new covenant targets will be introduced.
"The additional requirements outlined in the original waivers announced on May 21, 2020, including an obligation to retain GBP400 million liquidity headroom, no more than GBP2 billion of net debt and to not declare or pay dividends, will remain for the duration of the extended waiver period. However, these additional waiver period requirements can be removed if the group demonstrates compliance with investment grade metrics, being net debt-to-Ebitda below 3.5 times and Ebitda-to-interest above 3.0 times," Whitbread explained.
Finally, the firm has about GBP284 million of private placement notes that mature in 2021, 2022 and 2027. Whitbread intends to repay the 2021 and 2022 notes - GBP25 million and USD93.5 million, respectively - on their scheduled maturity dates of September 6, 2021 and January 26, 2022 respectively, and to repay the other notes - totalling GBP200 million - in the near future.
Shares in Whitbread closed 0.7% lower in London on Wednesday at 2,994.00 pence each.
By Paul McGowan; [email protected]
Copyright 2021 Alliance News Limited. All Rights Reserved.
Related Shares:
Whitbread