NICK BATRAM PEEL HUNT
Anything that gives the group more time to address the issues is to be welcomed... But the fact that the group is looking to extend the maturity profile of its bank facilities is likely to be a reflection of challenging trading and a turnaround plan that is likely to take longer to have an impact and cost more.
JAMES HOLLINS INVESTEC
We think this is a positive for Thomas Cook as fears over its near-term survival should go away, with the banks providing the support we had projected they would in February. The revolvers should be rearranged to move their expiry out to 2015, generating higher interest outflows but greater certainty.
SIMON FRENCH PANMURE GORDON
The key issue is that even after these steps (asset sales, sale and leaseback, refinance) the group has too much debt and too little operating cashflow. Prior to these steps we estimate a net debt of around £3.4bn including pension deficit. Post this action it is likely to fall to around £3bn. We reiterate “sell”.