Thomas Cook gets £200 million revolver at Libor plus 500 bps

By Sara Rosenberg

New York, Nov. 28 - Thomas Cook Group reached an agreement on a new £200 million revolving credit facility due April 30, 2013, according to a news release.

Pricing on the revolver is Libor plus 500 basis points, increasing by 50 bps each quarter.

Barclays, HSBC, RBS and UniCredit acted as the lead banks on the deal.

Proceeds were used to replace a £100 million short-term facility.

Also, the company amended its existing credit facility, comprised of a £150 million term loan and an £850 million revolver, to relax financial covenants.

Under the amendment, the leverage requirement was changed to 5.0 times through December, 4.75 times through March 2012 and 4.5 times thereafter, and the fixed charge coverage ratio was changed to 1.5 times.

The revised covenant levels apply until March 31, 2013, at which time they will revert to the original levels.

Additionally, the company has taken on additional restrictions, including no new share or business acquisitions, a limit on capital expenditure, and a prohibition on dividends and share buybacks.

Furthermore, with these transactions, the banks are being issued warrants to subscribe 42,914,640 new ordinary shares of the company exercisable at a strike equal to the average closing price for Nov. 25 and Nov. 28 at any time until May 22, 2015.

Thomas Cook is a London-based travel company.

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