- LONDON: Struggling travel firm Thomas Cook said it had agreed to extend its credit facilities with its lending banks for a further year at a lower rate of interest than it previously paid.
The group, which last week issued its third profit warning in twelve months, said it had agreed a one year extension of its committed bank facilities to May 2014.
The funding comprises a 200 million pound loan and an 850 million pound revolving credit facility.
The margin over LIBOR has been reduced on the loan to 2.25 percent and on the revolving credit facility to between 2 percent and 2.5 percent, having previously been 2.75 percent for both.
Finance Director Paul Hollingworth said Thomas Cook had around 900 million pounds of available cash and committed facilities.
“We are focussed on reducing our debt and strengthening our balance sheet and we have a number of initiatives underway to deliver progress on this, including the disposal of certain hotel and surplus assets,” Hollingworth said.