GVC Holdings has announced that it has agreed a new £535m Revolving Credit Facility 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.  As per the previous RCF, the covenant of net debt/EBITDA will be measured on a trailing 12-month pre IFRS-16 basis only if the facility is drawn by more than 35% at a quarter-end. 

For the quarter-ends up to, and including, 30 September 2021 the covenant limit will be no more than 6X net debt/EBITDA, thereafter the limit will return to 4X.

The facility is currently undrawn and on 6 April GVC confirmed that it is in a robust financial position², with accessible cash of over £350m³ at 31 March 2020. Of this amount, over £250m is cash at hand after excluding cash in shops, ringfenced PSP funds and other items which may not be immediately available.

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.”