SWINDON (dpa-AFX) - WH Smith (SMWH.L) announced that it has extended its bank financing arrangements with its existing banks, and further said its cash burn has improved, due to the company's better-than-anticipated trading performance since the start of January 2021.
The company noted that it has extended the maturity of its two existing £200 million Term Loans to October 2023 and agreed a new minimum liquidity covenant for both the August 2021 and February 2022 covenant tests. The previously agreed covenant waiver for February 2021 remains unchanged.
These changes have enabled the Group to cancel its existing £120 million liquidity loan which was undrawn and due to expire in November 2021. Also, the Group's £200 million Revolving Credit facility remains unchanged with the current arrangement due for renewal in December 2023, the company added.
In addition, the company stated that as reported on January 20, 2021, the Group was cash positive in November and December 2020. Despite the lockdown announced by the UK Government on January 4, 2021, the Group has delivered a better than expected performance.
The Group currently expects the monthly cash burn over the period January to March 2021 to be about £12 million - £17 million versus the previously guided £15 million - £20 million per month.
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