Opodo parent eDreams ODIGEO has been granted a relaxation of borrowing terms which it says sets it up for a rebound of travel as consumer confidence grows.
The European travel giant has announced that it has renewed its lending arrangements with SSRCF including an extension of covenant tests put in place last year to June 30 2022.
The firm said the waiver on the covenant was approved unanimously by all lenders and these are to be replaced by a €25 million minimum liquidity covenant which will be tested at the end of each quarter beginning June 30 2021 until March 31 2022.
EDreams ODIGEO has agreed it will not pay dividends on, or buy back, the company’s shares at any time prior to March 31 2022.
The OTA groups said consumer optimism is growing rapidly following the speedy roll out of the vaccines across many countries.
In a statement it said: “While our trading continues to be impacted by the restrictions caused by COVID-19 in our core European markets, we see continuous improvement in performance.
“In those countries where lockdown measures have already started to ease, like the United States, we see even better improvements.
“Consequently, the board and management team continue to ensure that once restrictions are lifted across our core markets, which is anticipated in the short-term, eDreams ODIGEO will be ready to take advantage of huge pent-up demand in the marketplace and emerge optimally positioned to build market share, revenue and profit.”
Dana Dunne, chief executive of eDreams ODIGEO, said: “We have maintained very strong liquidity through the crisis and the business has been extremely resilient following the actions taken, demonstrating the business’ flexibility and the strength of its model.
“Our lenders relaxation to minimum liquidity tests underlines our business’ strength and provides optimal financial firepower for when markets fully open. With the vaccine roll out firmly underway we are very positive about the future.
“EDreams ODIGEO stands to be a real and rapid beneficiary of the strong structural drivers that have accelerated dramatically over the last year, such as channel shift to online and mobile, increased importance of leisure travel and strong brands, coupled with our leading-edge product offerings in our mission to reinvent travel.
EDreams ODIGEO reported that at the end of March liquidity was €106 million, similar to when it reported it stood at €122 million in January, which includes the €12 million of interest payments incurred in February 2021.