(Alliance News) - GVC Holdings PLC on Tuesday said it has secured a new GBP535 million revolving credit facility with its existing lenders.
The FTSE 250-listed betting firm said the new facility is on the same terms as its previous revolving credit facility except for a revised covenant limit.
The covenant of net debt to earnings before interest, tax, depreciation, and amortization will be measured on a trailing 12-month pre IFRS-16 basis only if the facility is drawn by more than 35% at a quarter-end, GVC said. IFRS-16 is an accounting rule governing the financial treatment of leases.
GVC added that for the quarter-ends until September 30, 2021, the covenant limit will be no more than six times net debt to Ebitda. After that, the limit will return to four times net debt to Ebitda.
GVC said the facility is currently undrawn. As at the end of March, it had accessible cash of over GBP350 million.
"Having taken early and decisive actions to mitigate the impact of Covid-19 on our business, we are confident that we can achieve our target of breakeven cashflow per month during this crisis. I am delighted that we have reached agreement with our key lending banks on this revised revolving credit facility which will provide us with further financial flexibility to continue on our path of excellent growth momentum. We remain well placed to take advantage of a range of attractive growth opportunities which we believe will be available to us," said Chief Financial Officer Rob Wood.
The stock was trading 2.4% higher at 742.20 pence each on Tuesday morning in London.
By Ife Taiwo; ifetaiwo@alliancenews.com
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