Thomas Cook extends credit facility

18th Jul 2011 14:09

Travel operator Thomas Cook Group has agreed to extend its credit facilities for one year, with a reduced interest rate.Thomas Cook received a one-year extension of its committed bank facilities, which comprises of a £200m term loan and an £850m revolving credit facility, to May 2014.The interest margin on the term loan facility has reduced to 2.25% and reduced to a rate between 2.00% and 2.50% for the credit facility. Previously, the margin was 2.75% for both facilities.Last week, Thomas Cook, which had issued its third profit warning, said it will start a strategic and operational review of its business due to the on-going weakness in the UK."We continue to perform well on cash flow, with circa £900m of available cash and committed facilities. We are focussed on reducing our debt and strengthening our balance sheet and we have a number of initiatives underway to deliver progress on this including the disposal of certain hotel and surplus assets," chief executive officer Paul Hollingworth said.Shares of the company slipped 3.7% to 67.85p in London as of 14:53.AR