International multiservice provider Elis, textile, hygiene and facility services solutions provider in Europe and Latin America, today announces it has obtained, at its request, a waiver regarding its 31 December 2020 and 30 June 2021 bank covenant tests.
This follows the announcement made by the Group on31 March regarding the obtention of a waiver for its bank covenant test as of 30 June 2020, in order to better absorb the fallout from the Covid-19 crisis.
This new waiver concerns:
(i) the two revolving lines of credit underwritten by a pool of French and European relationship banks and
(ii) (ii) the USPP type private placement underwritten by a pool of US investors led by Barings.
The normative bank covenant level of 3.75x will therefore not be reinstated before 31 December 2021. This waiver comes with a limited c. €1.3mn fee, underscoring the excellent relationship between the Group and its lenders.
The Group has no major debt maturity before 2023, and today has more than €1.1bn of liquidity, in the form of (i) two revolving lines of credit for an undrawn amount of €900mn and (ii) c. €200mn in cash. Elis has preserved its liquidity since the beginning of the sanitary crisis, notably thanks to positive free cash-flow in March, April and May, as well as the reopening of the Commercial paper market.This new waiver obtained for the bank covenant test as of 31 December 2020 and 30 June 2021 therefore further improves Group financial flexibility in a context of gradual recovery.