Eurostar has reached a £250 million refinancing agreement with its shareholders and banks.
The embattled rail operator said the agreement comprises £50 million in additional shareholder equity, £150 million in shareholder-guaranteed loans from a syndicate of banks and £50 million from restructured existing loan facilities.
Jacques Damas, Eurostar chief executive, said: “Everyone at Eurostar is encouraged by this strong show of support from our shareholders and banks which will allow us to continue to provide this important service for passengers.
“The refinancing agreement is the key factor enabling us to increase our services as the situation with the pandemic starts to improve. Eurostar will continue to work closely with governments to move towards a safe easing of travel restrictions and streamlining of border processes to allow passengers to travel safely and seamlessly.
“Their co-ordinated actions and decisions are crucial to the restoring of demand and the financial recovery of our business.”
In a statement confirming the rescue package, Eurostar said it had experienced a more severe decline in demand than any other European train operator or competitor airline during the pandemic.
It said the agreement would enable it to “continue to operate this vital link and meet its financial obligations in the short to mid-term”.
The operator plans to increase its London-Paris frequency to two daily return services from May 27 and three per day from the end of June before gradually increasing over the summer season.