GVC Holdings has moved to restructure terms on its revolving credit facility with existing lenders, allowing for greater flexibility as the FTSE firm navigates global COVID-19 business complexities.

Last March, operating on a ‘worst-case scenario’ basis, whereby the global sports calendar would be suspended until August, GVC sanctioned access to a £550m revolving credit facility, with a view to maintaining corporate liquidity across all operating segments.

Following the first full month of lockdown, the firm has moved to a more positive outlook, slightly lowering its credit facility to £535m.

Existing lenders have allowed GVC to amend terms on ‘covenant’ net debt/EBITDA measurements on a trailing 12-month basis. Should the company withdraw more than 35% of credit capital during a trading quarter (up to 30 September 2021), covenant limits will be set at 6x net debt/EBITDA.

In its missive, GVC underlined that it has yet to access any capital related to its credit facility, with the company maintaining  £250m in cash funds, ‘excluding cash in shops, ring fenced PSP funds and other items which may not be immediately available.’

Updating investors, Group CFO Rob Wood commented: “Having taken early and decisive actions to mitigate the impact of COVID-19 on our business, we are confident that we can achieve our target of break-even cash flow per month during this crisis.”

“I am delighted that we have reached agreement with our key lending banks on this revised RCF which will provide us with further financial flexibility to continue on our path of excellent growth momentum. We remain well placed to take advantage of a range of attractive growth opportunities which we believe will be available to us.”