(Alliance News) - Hollywood Bowl Group PLC on Tuesday said the GBP10 million extension to its revolving credit facility will now be provided by Lloyds Bank under the terms of the UK government's Coronavirus large business interruption loan scheme.
Shares in Hollywood Bowl were down 1.0% at 143.00 pence in London on Wednesday.
The ten-pin bowling operator originally announced the extension on April 2, which had been with its existing lenders and was intended as an extension of Hollywood Bowl's existing GBP35 million facility.
Hollywood Bowl and its lenders also at that time had amended leverage covenants and waived the firm's cashflow covenants for the remainder of its 2020 financial year ending September 30.
However, the extension will now be provided by Lloyds Bank and will be provided under the terms of the coronavirus loan scheme, while the existing facility stays in place.
Covenants on the GBP35 million facility have been further amended for the first half of financial 2021 and Hollywood Bowl's new leverage covenants are for a net debt to last 12 months earnings before interest, tax, depreciation, and amortisation ratio of 1.50 times in June 2020, 2.25 times in September 2020, 5.0 times in December 202, and 1.50 times in March 2021.
Further, the June 2020 and September 2020 cash covenant has been waived, and stands at 1.00 times for December 202 and March 2021.
"In addition to the GBP10.5 million raised via a successful placing completed on 17 April 2020, management continues to take actions to maintain a strong cash and liquidity position, and to support team members, in order for the group to emerge from this period of significant disruption in a robust financial and operational position," said Hollywood Bowl.
It expects to post its half-year results for the period ended March 31 on June 1.
By Anna Farley; annafarley@alliancenews.com
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