Thomas Cook plans £1.6bn refinancing to turn around business

 
Suzie Neuwirth

TRAVEL agent Thomas Cook today announced a £1.6bn refinancing plan, aimed to transform the company’s fortunes.

The company also posted its half-year results, which recorded pre-tax losses of £390.9m and net debt of £1.2bn.

Losses fell from £584.1m year-on-year, aided by cost cutting measures.

The refinancing, which includes a rights issue and a new bond issue, will help implement the business transformation which aims to deleverage the company and enable it to resume dividends payments in the future.

Jefferies Hoare Govett and Credit Suisse have been appointed joint corporate brokers on the refinancing.

Credit Suisse and Gleacher Shacklock are joint sponsors and along with Short Partners are joint financial advisers to Thomas Cook.

“We have significantly strengthened the financial management of the group, with improved controls and reporting systems and substantial improvements in working capital management,” said CFO Michael Healy.

“The measures announced today set us on a firm footing for the future, enabling our continuing transformation of the company and bringing forward the time when we can return to paying sustainable dividends to our shareholders.”