TIDMSAGA

RNS Number : 2566R

SAGA PLC

05 March 2021

5 March 2021

Saga plc (the "Group" or "Saga")

Update on corporate and cruise ship finance facilities

Saga plc, the UK's specialist in products and services for people over 50, today announces the conclusion of discussions regarding options to increase financial flexibility. The Group has reached agreement to amend covenants on the term loan and revolving credit facilities and the agreement, which is expected to complete next week, of a one-year extension to the debt deferral on its cruise ship facilities.

Given the backdrop of continued disruption to the Travel business, the actions taken provide sufficient headroom should the period of Travel suspension, which is subject to government guidance, continue well into the second half of the year. The specific details of the amendments are shown in the appendix below.

Euan Sutherland, Group Chief Executive Officer, says:

"The successful conclusion of these discussions is the latest step in reinforcing Saga's financial position, and I would like to thank our funding partners for their ongoing support. We continue to see strong pent-up demand for travel among our customers and remain well placed to deliver on this opportunity when the guidance on international travel changes."

Date of Financial Results

Saga will publish its Preliminary Results on 7 April 2021.

For further information please contact:

 
 Saga plc 
 Mark Watkins - Treasury     Tel: 07738 777 479 
                             Email: mark.watkins@saga.co.uk 
 Emily Roalfe - Equity       Tel: 07732 093 007 
                             Email: emily.roalfe@saga.co.uk 
 
 Headland Consultancy 
 Susanna Voyle               Tel: 07980 894 557 
 Henry Wallers               Tel: 07876 562 436 
                             Email: saga@headlandconsultancy.com

Notes to editors

About Saga

Saga is a specialist in the provision of products and services for people over 50. The Saga brand is one of the most recognised and trusted brands in the UK and is known for its high level of customer service and its high quality, award winning products and services including cruises and holidays, insurance, personal finance and publishing. www.saga.co.uk

Appendix

Term loan and revolving credit facilities

The covenants within the Group's term loan and revolving credit facilities have been amended as follows:

 
                      Leverage ratio     Interest cover 
                        (ex Cruise) 
                       Old      New       Old      New 
------------------  --------           --------  ------- 
 30 April 2021*       4.75x    4.75x     1.25x    1.25x 
                    --------  -------  --------  ------- 
 31 July 2021         4.75x    4.75x     1.50x    1.25x 
                    --------  -------  --------  ------- 
 31 October 2021*     4.50x    4.50x     1.75x    1.25x 
                    --------  -------  --------  ------- 
 31 Jan 2022          4.00x    4.25x     2.50x    1.50x 
                    --------  -------  --------  ------- 
 31 July 2022         3.00x    3.00x     3.50x    3.50x 
                    --------  -------  --------  -------

* Quarterly covenants are only tested if leverage is above 4.0x times at the previous covenant test date.

In addition, the following amendments have also been made:

-- The Group is subject to a minimum liquidity requirement of GBP40 million, which can be met either through cash or undrawn and committed facilities.

-- The permitted indebtedness to the Cruise Group is GBP50m until September 2022, and then reduces to GBP25m.

   --           Dividends remain restricted while leverage (excluding Cruise) is above 3.0x.

Cruise ship debt deferral

As part of an industry-wide package of measures to support the cruise industry, an extension of the existing debt deferral has been agreed to 31 March 2022. The key terms of this deferral are:

-- All principal payments to 31 March 2022 (GBP51.8 million) are deferred and repaid over 5 years.

   --           All financial covenants until 31 March 2022 are waived. 
   --           Dividends remain restricted while the deferred principal is outstanding.

-- The Group is now subject to a minimum liquidity requirement of GBP40 million, which can be met through either cash or undrawn and committed facilities.

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