Friday, July 03, 2020

Mint gets green light to waive financial covenant testing

Jun 02. 2020
Facebook Twitter

By The Nation

Hospitality group Minor International (Mint) has won approval from bondholders to waive financial covenant testing for the next three quarters amid the virus crisis.

Mint chief financial officer Brian James Delaney said this would help provide additional financial flexibility to ensure the company’s debt covenants will not be breached.

“The meeting [with bondholders] went successfully. We are delighted to receive such positive support, as the company’s plans and directions are well-understood by bondholders”, Delaney said.

The waiver will serve as another safety net to manage the company’s capital structure, said the group, which covers Minor Hotels, Minor Food and Minor Lifestyle. It comes on top of Mint’s comprehensive long-term funding strategy, which includes perpetual bond issuance, right offerings, and warrants.

Delaney said the company was currently in a strong position in terms of liquidity, with cash reserves of Bt22 billion and unutilised credit facilities of Bt36 billion as of April. He added that this, together with the upcoming equity raising activity, would ensure Mint had sufficient financial resources for the next three years.

“Mint will always maintain its strong financial discipline in any circumstances. We would also like to reiterate that we will honour any interest expense and principal commitments”, Delaney said.

Tags:
Facebook Twitter
More in Business
Editor’s Picks
wmg-logo
Top News
wmg-logo