DEPARTMENT store Myer has amended and extended its bank facility until August 2022.
The amended facility of $340 million includes $30 million due during 2021 and $60 million during 2022, compared to the existing facility of $360 million.
Myer said the reduced size in part reflects the company’s success in deleveraging the balance sheet during the past two years, with a peak debt level for 2019 of $220 million, compared to $290 million a year earlier, and an increase in net cash at the end of 1H20 by $65m to $103m when compared to 1H19.
The lenders have agreed that no covenant testing will be required at the end of FY20, given the significant impact of COVID-19 on Myer’s operations during 2H20.
Myer CFO, Nigel Chadwick said: “Securing this new facility with our existing lenders is testament to the work that we have undertaken during the past two years. It is particularly pleasing to have secured this extension to our facilities during such an unprecedented time of economic and social disruption in retail. We also wish to acknowledge the important and continuing support provided by the lending syndicate.”
Meanwhile despite the loss of revenue and earnings as a result of the store closures and reduced foot traffic, the company expects to report a small net cash positive position at the end of FY20. This compares to $39 million in net debt at the end of FY19.
Myer has progressively reopened in department stores across Australia but in Melbourne, it has closed them for six weeks to comply with stage four restrictions.
