Thomas Cook lowers interest on bank facilities, pushes out maturity

By Susanna Moon

Chicago, July 18 - Thomas Cook Group plc said it extended its committed bank facilities by one year to May 2014 and lowered interest on the term loan to Libor plus 225 basis points.

The facilities comprise a £200 million term loan and an £850 million revolving credit facility, according to a company press release.

Interest on the revolver was reduced to Libor plus 200 bps to 250 bps, based on the amount drawn. The margin was amended from 275 bps for both facilities.

"As stated in our recent trading update, we continue to perform well on cash flow, with circa £900 million of available cash and committed facilities," Paul Hollingworth, chief financial officer of Thomas Cook, said in the release.

"We are focused 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."

Thomas Cook is a Peterborough, England-based travel and tourism company.

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