National Express agrees debt buffer with banks
Thursday 18 June 2009
National Express has struck a deal with banks to delay for six months a tightening of the terms governing its £1.2bn debt mountain.
The bus and rail operator had faced reverting to stricter lending terms from 30 June, under which its net debt would be pegged at three-and-a-half times its earnings before interest, tax, depreciation and amortisation (Ebitda).
National Express said it would have met the tougher terms after a cost-cutting drive led to job losses and a reduced dividend, but the group, which also operates in the US and Spain, has agreed a relaxation on its covenants to four times Ebitda for the rest of the year to give it "additional headroom". In recent weeks, speculation about National Express's balance sheet and a potential £400m rights issue has been growing.
The company's shares fell by 24.25p, or 7.8 per cent, to 286.75p yesterday, as some City analysts said a breach of covenants was still likely in the second half. Last month, National Express said revenues at its UK bus and coach division had risen by 4.1 per cent in the three months to 31 March, but there was a "continued slowdown" at its UK rail operation, which includes the East Coast franchise.
National Express said it had made good progress towards delivering incremental cash benefits of more than £100m in 2009. Last week, it sold its Travel London bus unit to NedRailways of the Netherlands for £32m.
By performing as African Americans or Indians, white people get to play act a kind of 'imaginary liberation', writes Michael Mark Cohen
New essay by JK Rowling went live on Pottermore site this morning
New UK station Russia Today gives a very bizarre view of Britain
Top Gear presenter is no stranger to foot-in-mouth controversy
- 1 Canadian actor punched in face after 'Islamophobia' experiment goes wrong in wake of Ottawa shooting
- 2 Topshop at centre of row over body image as 'shocking' skinny mannequin photo goes viral
- 3 Woman blinded as a child can see again after hitting her head on a coffee table
- 4 Top Gear presenter Jeremy Clarkson criticised for beer tweet
- 5 The bubble bursts for Sodastream
'Nasa Confirms Six Days of Darkness in December': No, they don't - it's a hoax
Woman blinded as a child can see again after hitting her head on a coffee table
Top Gear presenter Jeremy Clarkson criticised for beer tweet
The bubble bursts for Sodastream
Russian politician says Apple CEO Tim Cook should be 'banned' from country after coming out as gay
Pope Francis declares evolution and Big Bang theory are real and God is not 'a magician with a magic wand'
Huge surge in Ukip support after EU funding row, according to new poll
Ukip ‘exploiting grooming scandal’ to secure party’s first police chief
Nigel Farage: 'There’s nothing wrong with white people blacking up'
Maureen Lipman says 'she can't vote Labour while Ed Miliband is leader'
Muslims, immigration and teenage pregnancy: British people are ignorant about almost everything
iJobs Money & Business
£18000 - £23000 per annum + Comission: SThree: SThree, International Recruitme...
£20000 - £25000 per annum + OTE £35K: SThree: We consistently strive to be the...
£20000 - £23250 Per Annum pro rata: Clearwater People Solutions Ltd: Pro rata ...
£40 - 48k + Benefits: Guru Careers: We are seeking a Marketing Manager to join...