Saga gains wiggle-room from its lenders

0
21

Saga PLC (LON:SAGA), the insurance and holidays specialist serving people born before 1971, has negotiated some additional breathing space on its lending arrangements.

The company, which has seen its holiday business devastated by the coronavirus pandemic, has reached an agreement to amend covenants on its loan and revolving credit facilities and is also on the cusp of signing a one-year extension to the debt deferral on its cruise ship facilities.

Dividends will remain restricted while the deferred principal on its cruise ship debt is outstanding and while leverage (excluding the cruise debt) is above 3.0 times annual earnings.

The new arrangements will give it extra wiggle-room while uncertainties over holiday planning persist because of the pandemic.

“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,” said Euan Sutherland, the chief executive officer of Saga.

LEAVE A REPLY

Please enter your comment!
Please enter your name here