SBC News Voice of the Sports Betting Industry
Tabcorp Holdings has reached an agreement with its US debt holders which will allow the ASX gambling group to defer payments on its debt covenants.
Last month, Tabcorp communicated that it had entered negotiations with US debt holders to obtain new ‘covenant terms’ on its corporate debt tranche of AUS $2.1 billion, maximising financial flexibility as it looks to navigate COVID-19 headwinds.
Issuing a market filing, Tabcorp confirmed that US debt holders will allow the company to defer its next two covenant interest payments covering the trading periods of 30 June and 31 December 2020.
The reprieve on interest repayments will see Tabcorp cancel its investor dividend rewards for the fiscal year ending 30 June – a measure which had been previously communicated in Tabcorp 2019/2020 full-year results.
Maintaining no debt interest repayments for the remainder of 2020, Tabcorp revealed that it will improve corporate liquidity from AUS $720 million to circa AUS $830 million (€500 million).
Tabcorp Group CEO David Attenborough commented on the transaction statement: “Following on from the support of our syndicate banks, we now welcome the support of our US noteholders for the financial flexibility they have afforded us in managing the uncertainty created by Covid-19.”
