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Applegreen Completes Welcome Break Credit Deal

Published on Jul 1 2020 10:39 AM in Retail tagged: Featured Post / Applegreen / Welcome Break

Applegreen Completes Welcome Break Credit Deal

Applegreen has announced that its Welcome Break subsidiary has successfully completed a process to access additional facilities.

According to the roadside convenience retailer Welcome Break has repurposed £25 million of a dedicated capital expenditure facility in its existing banking facilities into a revolving credit facility which is available to draw down for any purpose.

The lenders to Welcome Break have also agreed to relax or remove covenant conditions for tests up to and including June 2021, it added.

'Welcome Break has traded in line with the company's COVID19 projections for both May and June and the business has now reopened a significant number of its food and beverage offers to meet demand as travel restrictions started to ease from early June,' Applegreen said.

In a statement the group outlined that traffic volumes on the UK motorway road network are continuing to recover and current traffic flows are now back to over 65% of 2019 volumes.

New Undrawn Facilities

According to the group on the 26 June 2020, Welcome Break had over £30m in available cash in addition to the new undrawn facilities of £25 million.

The Welcome Break business has substantial liquidity and is expected to be cashflow positive in June, leaving the business well positioned ahead of the important summer season, it added.

The remainder of the Applegreen business has continued to trade ahead of its COVID19 projections for both May and June.

The company said that it is very pleased with the performance which has been aided by strong store sales in the local petrol filling station sites, good fuel margins and extensive cost saving measures.

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