GVC Holdings announced Tuesday that it has agreed a new £535 million (USD 665 M) Revolving Credit Facility (RCF) with existing lending banks. The new RCF is on substantially the same terms as GVC’s previous RCF —which has now been cancelled— save for a revised covenant limit.
The facility is currently undrawn, and on 6 April, GVC confirmed that it is in a robust financial position, with accessible cash of over £350 million (USD 435 M) on 31 March 2020. Of this amount, over £250 million is cash at hand after excluding cash in shops, ring-fenced PSP funds and other items which may not be immediately available, GVC said in a release.
Rob Wood, GVC’s CFO, commented: “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 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 which we believe will be available to us.”