16th Jul 2008 13:16
Trinity Mirror plc
16 July 2008
TRINITY MIRROR PLC
STATEMENT
Trinity Mirror has noted recent press commentary concerning its debt facilities and pension liabilities.
The Company wishes to clarify the following:
Financing
Trinity Mirror is trading comfortably within the covenants for its debt facilities.
The Company had around £425 million of net debt as at 29 June 2008.
The majority of the Company's borrowings are through a US$ private placement, with principal financial covenants as follows:
- Net Debt/EBITDA no greater than 4 times
- Interest cover not less than 2 times
With the exception of a circa £60 million repayment in October 2008 no further repayments on the US private placement are due until October 2011. This repayment will be funded through cash flow and drawing on the new bank facility.
In addition, the Company has a new £210 million bank facility secured during June 2008. No cash drawings have been made on this facility. The principal financial covenants attached to this facility are as follows:
- Net Debt/EBITDA no greater than 3.25 times
- Interest cover not less than 3 times.
There has been no tightening of the financial covenants in this facility relative to the £269 million facility which it replaced.
Pensions
There are no liquidity issues with any of our pension schemes and deficits continue to be funded in accordance with payment schedules agreed with the
Trustees of the various pension schemes. The Company does not expect any increase in pension contributions during 2008 beyond those already agreed.
As usual, the Company will provide an update on its pension schemes at the time of its interim results, which will be announced on 31st July.
Trading
The Company continues to be cash generative and to perform in line with expectations following the trading update issued on 30th June.
Enquiries to:
Trinity Mirror plc
Vijay Vaghela, Group Finance Director 020 7293 3000
Nick Fullagar, Director Corporate Communications 020 7293 3622
Maitland
Neil Bennett 020 7379 5151
Emma Burdett
Related Shares:
Reach Plc