Tabcorp Holdings has told investors that no dividend will be approved by the firm in respect of trading for the financial year 2020.
As part of its agreed terms with bank lenders, the firm was forced to terminate the 2020 dividend (fiscal year ending 30 June), allowing the ASX betting group to waive approximately AUS $2.2 billion ( € 1.3 billion) of debt covenants until 2021.
Updating investors, Tabcorp said new conditions were required to retain working capital to help Tabcorp business units manage COVID-19 headwinds on the company’s ‘syndicated facilities agreement.’
Further financial developments saw Tabcorp enter into negotiations with U.S. private placement holders seeking new terms of agreement on a further $2.1 billion tranche of the company’s debt.
Should Tabcorp secure an additional US debt waiver, the ASX company will not hold any debt maturity repayments for the remainder of trading in 2020.
New covenant agreements helped to improve corporate liquidity to AUS $820 million ( € 480 million) as of May, compared to $749 million ( € 440 million) available at the beginning of April, the firm said.
Tabcorp Group CEO David Attenborough said: “We welcome the support of our syndicate banks during this challenging period.
“The waivers complement recent actions we have taken to preserve our liquidity and mitigate the financial and earnings impacts of Covid-19.”