Melrose wins covenant waiver as lenders take ‘pragmatic’ approach to leniency asks

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By Mike Turner
04 Aug 2020

Melrose Industries, the UK industrial conglomerate, has negotiated improved financial covenants with its lenders on around £4.1bn of debt, as loans bankers say there is still a backlog of companies looking to renegotiate covenants in the face of economic fallout from Covid-19.

Melrose’s banking group has agreed to waive testing the company's net debt to Ebitda ratio until December 2021, meaning two tests will be skipped. For the first test in December 2021, banks have agreed to let Melrose have a leverage cap of 5.25 times, up from 3.5 times. ...

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