07:00 Tue 04 Aug 2020
Melrose Industries - Financing Update
FINANCING UPDATE
Following the trading updates on
The Group's committed c.
Melrose is grateful for the continued support of its lending banks which means that it has the flexibility it needs to continue to focus on cash generation and adapting the Group to current market conditions. The new financial covenants have been designed to give Melrose considerable headroom and flexibility.
There is a modest cash cost to secure this amendment but there is no change to previously agreed interest rate calculations. Melrose has passed its covenant tests for
The improved financial covenants are shown in the table below:
Financial Covenant | | | | | |
Net debt :EBITDA | Waiver* | Waiver | 5.25x** | 4.75x** | 4.0x** |
EBITDA :Net finance charges | 2.5x | 3.0x | 3.0x | 3.25x | 4.0x |
*Announced on
**Subject to downward adjustments upon certain material disposals
Following
"We have now put in place new amended arrangements with our banks that last until the end of 2022. We thank our banks again for their continued support which gives us the headroom and flexibility to continue to focus on cash generation and adapt the Group as needed. Melrose also retains over
- ends
Enquiries:
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| +44 (0) 20 3514 0897 |
| +44 (0) 7973 130 669 |
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| +44 (0) 20 3514 0897 |
| +44 (0) 7921 881 800 |
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Melrose Investor Relations: | +44 (0) 7974 974690 |
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