Thomas Cook announces £1.6bn refinance plan
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Thomas Cook has announced a GBP1.6 billion capital refinancing plan to secure its future after posting improved results in its latest update.
The tour operator hopes to raise GBP425m through a placing and rights issue; GBP441m in new bonds and GBP691m from new banking facilities.
It comes after the group announced its losses fell from GBP584.1m to GBP390.9m year-on-year after cutting costs and an improved UK business.
The group has already renegotiated bank loans and sold aircraft and high street shops while aiming to boost its online business under new chief executive Harriet Green. Its earnings before tax has improved by GBP58.7m with the sale of its USA and Canada businesses now completed.
“Today we are pleased to report improving financial results and announce important measures to strengthen our balance sheet. Earnings before interest and tax and gross margin are well ahead of last year and our cost out and profit improvement actions are going very well, allowing us to increase our target yet again,” said Green on the results.
“Our progress transforming the business also enables us to undertake our capital refinancing plan. This will reduce the very significant debt that we inherited, lengthen its repayment profile and consequently help us deliver the full benefits of the strategic plan we set out in March,” she added.