Thomas Cook amending £1.4 billion credit facility to extend maturity

By Sara Rosenberg

New York, May 8 - Thomas Cook Group plc has reached an agreement with lenders to extend the maturity on its entire £1.4 billion credit facility to May 31, 2015, according to a news release.

The facility consists of a £150 million term loan, an £850 million revolver, of which £200 million will not be available for utilization between July and September, a £200 million liquidity facility and a £200 million bonding and guarantee facility.

Pricing on the liquidity facility was left unchanged, but all of the other tranches saw a pricing increase to Libor plus 350 basis points.

As a result of the amendment, there are no fixed repayments on the facility and the company can now retain the proceeds of certain disposals.

Also, financial covenants were revised to provide greater financial flexibility.

The leverage covenant is now 4.50x at June, 4.25x at September, 6.10x at December, 5.25x at March 2013, 3.75x at June 2013, 3.55x at September 2013, 4.70x at December 2013, 4.15x at March 2014, 3.25x at June 2014, 3.10x at September 2014, 4.35x at December 2014 and 4.05x at March 2015.

And, the fixed charge covenant is 1.35x through December, 1.40x at March 2013, 1.50x at June 2013, 1.60x at September 2013, 1.65x at December 2013, 1.70x at March 2014, 1.75x at June 2014 and 1.80x through March 2015.

Lenders are getting a 100 bps amendment fee and warrants to subscribe for new ordinary shares at an exercise price of €0.10 per share.

Thomas Cook is a London-based travel company.

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