Autogrill enters ‘Covenant Holiday’ with financiers to mitigate COVID-19 impact

ITALY. Food & beverage sector leader Autogrill today announced that it has entered into an agreement with its lenders – UniCredit; Banca IMI; Intesa Sanpaolo; Mediobanca – Banca di Credito Finanziario; and Banco BPM – regarding a ‘covenant holiday’ in terms of the testing of its financial covenants (Leverage Ratio and Consolidated EBITDA/Consolidated Net Finance Charges) for 15 months from 30 June 2020 (inclusive).

The holiday can be extended to 31 December 2021 upon specific conditions being met.

The agreement is designed to mitigate the negative financial and operational impacts of the COVID-19 pandemic.

Similar agreements were entered into by Autogrill’s US subsidiary HMSHost Corporation with its lenders – Bank of America; Intesa Sanpaolo; New York Branch; Coöperatieve Rabobank (New York branch); and UniCredit Bank (New York branch) as well as with subscribers of the outstanding USPP bonds.

In order to allow Autogrill and the whole Group to continue to best support the operations and to take advantage of business opportunities in the current challenging situation, all the executed agreements provide for an increase in the maximum permitted financial debt thresholds. They also provide for the exclusion of any event connected or associated with the health emergency caused by the COVID-19 pandemic during the covenant holiday period.

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