Saga plc, the UK based listed financial services to cruise shipping group, and its lenders have agreed to relax certain loan covenants in the wake of the coronavirus crisis, the company said in a statement.
The net debt to EBITDA (excluding Cruise debt and EBITDA) covenant within the Term Loan and RCF (revolving credit facility) was increase to 4.75x from 3.5x for reporting periods from 30 July 2020 to 30 April 2021, and to 4.25x at 30 July 2021.
The company booked a net loss of £300.9 million on revenues of £797.3 million in 12 months to January 2020 as an impairment charge of £383.0 million hurt the bottom line.
A year earlier, the loss had been £162.2 million on revenues of £841.5 million, with an impairment charge of £310.0 million affecting the bottom line.
“In a year of change, Saga has made significant operational progress and strengthened the management team to ensure the business is positioned to deliver for our customers and members and for investors. Our Insurance and Cruise businesses made good progress against the priorities we set out in April and we have moved to significantly strengthen our financial position, reducing debt and operating expenses and improving cash flow,” CEO Euan Sutherland said in a statement.
