UK – British betting and gambling firm GVC Holdings has announced that it has reached an agreement for a new Revolving Credit Facility with the firm’s existing lending banks to mitigate the impact of Covid-19 and provide financial flexibility to continue growing the company.
According to the website Corporate Finance Institute a revolving credit facility is a ‘line of credit that is arranged between a bank and a business’ that ‘has an established maximum amount’ that the business ‘has access to the funds at any time when needed’.
Chief financial officer of GVC Holdings Rob Wood commented on the agreement:
“Having taken early and decisive actions to mitigate the impact of COVID-19 on our business, we are confident that we can achieve our target of breakeven cashflow per month during this crisis.
I am delighted that we have reached an agreement with our key lending banks on this revised RCF, which will provide us with further financial flexibility to continue on our path of excellent growth momentum.
We remain well-placed to take advantage of a range of attractive growth opportunities we believe will be available to us.”
Reportedly, the firm predicted that its Earnings before interest, taxes, depreciation, and amortization could fall by as much as fifty million pounds per month during the ongoing Covid-19 crisis.