Elis Prepares for Recovery – Waiver on Pending Bank Covenant Tests

Elis – the textile, hygiene and facility services solutions provider in Europe and Latin America – recently announced it has obtained – at its request – a waiver with regard to its 31 December 2020 and 30 June 2021 bank covenant tests in order to better deal with the consequences from the Covid-19 crisis.

The new waiver concerns:
–              the two revolving lines of credit underwritten by a pool of French and European relationship banks and

–              the USPP type private placement underwritten by a pool of US investors led by Barings.

The Group states to have no major debt maturity before 2023, and today has more than €1.1bn of liquidity, in the form of two revolving lines of credit for an undrawn amount of €900mn and c. €200mn in cash. The company has maintained its liquidity since the beginning of the sanitary crisis, notably thanks to positive free cash-flow in March, April and May, as well as the reopening of the Commercial paper market. Consequently, this new waiver is to further improve the Group’s  financial flexibility in connection with a gradual recovery.