By Owain Flanders
GVC Holding has announced it has agreed a new £535m ($667.3m) Revolving Credit Facility (RCF) with existing lending banks.
The updated RCF is on predominantly the same terms as the former agreement except for a revised covenant limit.
Through the terms of the new RCF, the covenant of net debt/EBITDA will be measured on a trailing 12-month pre IFRS-16 basis only if the facility is drawn by more than 35% at the end of a quarter.
Rob Wood, GVC CFO, said: “Having taken early and decisive actions to mitigate the impact of COVID-19 on our business, we are confident that we can achieve our target of breakeven cashflow per month during this crisis.
“I am delighted that we have reached an agreement with our key lending banks on this revised RCF, which will provide us with further financial flexibility to continue on our path of excellent growth momentum.
“We remain well-placed to take advantage of a range of attractive growth opportunities we believe will be available to us.”
GVC recently predicted its EBITDA could fall by £50m per month during the current coronavirus pandemic.
This is down from the original forecasted £100m loss per month as the operator continues to implement mitigations to reduce the impact of the crisis.