Thomas Cook has agreed a change to its banking facilities giving it an extra £100 million credit to see it through the quiet winter trading period.
The travel giant announced to the City this morning that it has agreed a amendment to a facility it announced on September 29 giving it greater “flexibility”.
As part of the deal it has signed a new short-term “committed bank facility” to provide the additional £100 million which it said would give it “headroom around the seasonal cash low point at the end of December this year”.
Paul Hollingworth, chief financial officer said: “We are pleased to have the full support of our banking group in amending the financial covenants so as to provide greater financial flexibility, particularly around the seasonal cash low point at the end of December.”
An existing credit facility includes a £150 million amortising term loan and a £850m revolving credit facility which is due to mature in May 2014. Thomas Cook said the covenants it has in place will be tested at the end of each calendar quarter on a rolling twelve month basis and the revised agreements apply until March 2013.