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Trainline lenders agree waiver on RCF
29th Apr 2020 08:28
(Sharecast News) - Rail and coach ticketing website Trainline said lenders had waived covenants on the company's ?350m revolving credit facility until August 2021 to help it through the Covid-19 pandemic.
The covenant, tested semi-annually, required that Trainline's net debt position did not surpass 3.75 times adjusted earnings before, interest, tax, depreciation and amortisation for the prior 12 months.
"Today's announcement underlines the group's confidence that it can operate through an extended downturn period if required," Trainline said in a statement on Wednesday.
The company last week said it would cut monthly operating costs and capital expenditure to ?8m - ?9m to help weather an extended downturn caused by the coronavirus, which has seen a slump in passengers numbers during a government lockdown.
It also furloughed some teams under the UK government's coronavirus job retention scheme and cut executive pay, including a 50% salary reduction for chief executive Clare Gilmartin for the foreseeable future.
The covenant, tested semi-annually, required that Trainline's net debt position did not surpass 3.75 times adjusted earnings before, interest, tax, depreciation and amortisation for the prior 12 months.
"Today's announcement underlines the group's confidence that it can operate through an extended downturn period if required," Trainline said in a statement on Wednesday.
The company last week said it would cut monthly operating costs and capital expenditure to ?8m - ?9m to help weather an extended downturn caused by the coronavirus, which has seen a slump in passengers numbers during a government lockdown.
It also furloughed some teams under the UK government's coronavirus job retention scheme and cut executive pay, including a 50% salary reduction for chief executive Clare Gilmartin for the foreseeable future.