Last checked at (Sharecast News) - Saga, which specialises in products for the over-50s, is reportedly in talks about a £170m debt package as it looks to weather the coronavirus pandemic.
According to Sky News, the company - which last year rejected a takeover offer- has begun talks with a group of debt funds about refinancing part of its existing borrowings. Sky cited City sources as saying that Saga was considering trying to secure the new debt against its insurance arm, which is the stronger of its two businesses.
The talks with existing prospective lenders are some way from being concluded, according to insiders, and may not result in a deal, Sky said.
In a trading update at the end of last month, Saga said: "Whilst the group has significant liquidity and headroom to the current covenants in short term bank facilities, given the backdrop of continued disruption to the travel business, we are taking actions to further enhance financial flexibility.
"We have commenced constructive discussions with lenders, who remain supportive. We are reviewing the covenants attached to our term loan and revolving credit facility, to increase flexibility ahead of the resumption of travel. As part of a package of measures available for the cruise industry, separate discussions are underway in relation to a further debt deferral and covenant waiver for the two ship facilities."
At 0810 GMT, the shares were down 3.8% at 287.34p.
17 Oct 2019 16:12
Director dealings: Saga chairman raises stake
(Sharecast News) - Saga revealed on Thursday that chairman Patrick O'Sullivan had acquired 100,000 ordinary shares in the British "life after 50" specialists.
Read more