INTERNATIONAL
International multiservice provider Elis, provider of textile, hygiene and facility services solutions in Europe and Latin America, today announced that it has decided to waive its bank covenant tests of December 31, 2020 and December 30, 2020. June 2021.
This follows the Group's announcement on March 31 that it would waive its bank covenant test on June 30, 2020 to better absorb the effects of the Covid 19 crisis.
This new waiver affects:
(i) the two revolving credit lines drawn by a pool of French and European relationship banks, and
(ii) (ii) the USPP type private placement drawn by a pool of US investors led by Barings.
The normative bank covenant level of 3.75x will therefore not be reintroduced before December 31, 2021. This waiver is associated with a limited c. € 1.3 million fee, which underlines the excellent relationship between the group and its lenders.
The group had no major debt maturity before 2023 and today has liquidity of more than EUR 1.1 billion in the form of (i) two revolving credit lines for an undrawn amount of EUR 900 million and (ii) c. € 200 million in cash. Elis has maintained its liquidity since the start of the sanitation crisis, thanks in particular to the positive free cash flow in March, April and May and the reopening of the commercial paper market.
This new waiver of the Bank Covenant test as of December 31, 2020 and June 30, 2021 therefore further improves the Group's financial flexibility in the context of a gradual recovery.
