SAGA PLC Corporate and cruise ship finance facilities (2566R)
March 05 2021 - 2:00AM
UK Regulatory
TIDMSAGA
RNS Number : 2566R
SAGA PLC
05 March 2021
5 March 2021
Saga plc (the "Group" or "Saga")
Update on corporate and cruise ship finance facilities
Saga plc, the UK's specialist in products and services for
people over 50, today announces the conclusion of discussions
regarding options to increase financial flexibility. The Group has
reached agreement to amend covenants on the term loan and revolving
credit facilities and the agreement, which is expected to complete
next week, of a one-year extension to the debt deferral on its
cruise ship facilities.
Given the backdrop of continued disruption to the Travel
business, the actions taken provide sufficient headroom should the
period of Travel suspension, which is subject to government
guidance, continue well into the second half of the year. The
specific details of the amendments are shown in the appendix
below.
Euan Sutherland, Group Chief Executive Officer, says:
"The successful conclusion of these discussions is the latest
step in reinforcing Saga's financial position, and I would like to
thank our funding partners for their ongoing support. We continue
to see strong pent-up demand for travel among our customers and
remain well placed to deliver on this opportunity when the guidance
on international travel changes."
Date of Financial Results
Saga will publish its Preliminary Results on 7 April 2021.
For further information please contact:
Saga plc
Mark Watkins - Treasury Tel: 07738 777 479
Email: mark.watkins@saga.co.uk
Emily Roalfe - Equity Tel: 07732 093 007
Email: emily.roalfe@saga.co.uk
Headland Consultancy
Susanna Voyle Tel: 07980 894 557
Henry Wallers Tel: 07876 562 436
Email: saga@headlandconsultancy.com
Notes to editors
About Saga
Saga is a specialist in the provision of products and services
for people over 50. The Saga brand is one of the most recognised
and trusted brands in the UK and is known for its high level of
customer service and its high quality, award winning products and
services including cruises and holidays, insurance, personal
finance and publishing. www.saga.co.uk
Appendix
Term loan and revolving credit facilities
The covenants within the Group's term loan and revolving credit
facilities have been amended as follows:
Leverage ratio Interest cover
(ex Cruise)
Old New Old New
------------------ -------- -------- -------
30 April 2021* 4.75x 4.75x 1.25x 1.25x
-------- ------- -------- -------
31 July 2021 4.75x 4.75x 1.50x 1.25x
-------- ------- -------- -------
31 October 2021* 4.50x 4.50x 1.75x 1.25x
-------- ------- -------- -------
31 Jan 2022 4.00x 4.25x 2.50x 1.50x
-------- ------- -------- -------
31 July 2022 3.00x 3.00x 3.50x 3.50x
-------- ------- -------- -------
* Quarterly covenants are only tested if leverage is above 4.0x
times at the previous covenant test date.
In addition, the following amendments have also been made:
-- The Group is subject to a minimum liquidity requirement of
GBP40 million, which can be met either through cash or undrawn and
committed facilities.
-- The permitted indebtedness to the Cruise Group is GBP50m
until September 2022, and then reduces to GBP25m.
-- Dividends remain restricted while leverage (excluding Cruise) is above 3.0x.
Cruise ship debt deferral
As part of an industry-wide package of measures to support the
cruise industry, an extension of the existing debt deferral has
been agreed to 31 March 2022. The key terms of this deferral
are:
-- All principal payments to 31 March 2022 (GBP51.8 million) are
deferred and repaid over 5 years.
-- All financial covenants until 31 March 2022 are waived.
-- Dividends remain restricted while the deferred principal is outstanding.
-- The Group is now subject to a minimum liquidity requirement
of GBP40 million, which can be met through either cash or undrawn
and committed facilities.
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