WFS Amends RCF Covenant Terms, Discusses State Support: Lucror
(Bloomberg) -- Air cargo handler Worldwide Flight Services has renegotiated the terms of its RCF maintenance covenant, according to a note from Lucror analysts published April 20.
* WFS has replaced the net leverage test for 2Q and 3Q with a minimum liquidity test of EU40m, Lucror says
* If the covenant is breached, it will trigger a drawstop on the RCF, not an event of default: Lucror
* The company is discussing government support programs in several countries and is already benefiting from various state relief measures
* Liquidity was more than EU85m at end-March, plus a further EU25m from a sale-and-leaseback completed in April
* WFS’s cost-cutting measures may not fully offset the decline in its revenue and liquidity could become tight if the pandemic wears on, Lucror writes
* Its bonds jumped more than 5 points on Monday, and are higher again today, according to data compiled by Bloomberg
* A spokesman for WFS confirmed the information given by Lucror was accurate when contacted by Bloomberg
By Ruth McGavin