Home TypeNews GL events reinforces liquidity with bond covenant holiday and new state-guaranteed loan

GL events reinforces liquidity with bond covenant holiday and new state-guaranteed loan

by Paul Colston

International events services group and organiser, GL events has moved to reinforce the group’s liquidity and financial flexibility after obtaining a bond covenant holiday and a new €164m state-guaranteed loan from its financial partners.

GL events completed discussions with its bondholders to obtain the covenant holiday for the fiscal year ending 31 December 2020 for three series, representing €230m. The original financial terms have been maintained to date without the application of waiver fees.

The Group had already been granted a covenant holiday by its banking partners in Q3 2020 according to the same terms.

GL events has also obtained €164m from its banking partners through a new French State guaranteed loan programme that has been made available for the tourism and related industries*.

After drawing down this new line, the Group says it will have approximately €400m in cash and cash equivalents. In addition, the Group still has an undrawn €100m revolving credit facility.

Olivier Ginon (pictured), chairman-CEO of GL events, commented: “I wish to thank the banking partners and bondholders for their renewed support which demonstrates their confidence in our Group. This new credit line strengthens GL events’ cash position and financial flexibility and will allow us to come through this crisis and rebound starting in 2021.”

*Prêt garanti par l’État (PGE) “saison”: a new French government programme introduced to support the tourism, hotel, restaurant, sports and event industry sectors after the application of public health measures.

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