Edition:
India

Informa Says Constructive Talks Underway With US Private Placement Debt Holders


Thursday, 16 Apr 2020 

April 16 (Reuters) - Informa Plc ::FURTHER COST-REDUCTIONS, TEMPORARY SUSPENSION OF DIVIDENDS, DISCUSSIONS ON A DEBT COVENANT WAIVER AND ISSUE OF ADDITIONAL NEW EQUITY.ENHANCED MEASURES DELIVERING £130M+ DIRECT/INDIRECT SAVINGS INCLUDING REMOVAL OF ALL DISCRETIONARY COSTS.EXTENSION OF POSTPONEMENT PROGRAMME, WITH £460M+ OF REVENUE RESCHEDULED TO Q3/Q4 2020 AND LESS THAN 10% OF EVENTS REVENUE CANCELLED TO DATE.IMPACT ON EVENTS-RELATED BUSINESSES (C65% OF REVENUE) HAS INTENSIFIED SIGNIFICANTLY SINCE INITIAL DISRUPTION EARLY IN Q1 IN MAINLAND CHINA.SCALE AND BREADTH OF COVID-19 PANDEMIC HAS SIGNIFICANTLY EXCEEDED INITIAL PREDICTIONS.NO EVENTS OF ANY SCALE SCHEDULED TO TAKE PLACE IN APRIL.REDUCED LEVEL OF ACTIVITY IS NOW EXPECTED TO STRETCH THROUGH Q2 AND MUCH OF Q3.TEMPORARY SUSPENSION OF DIVIDEND PAYMENTS, INCLUDING WITHDRAWAL OF 2019 FINAL DIVIDEND.CONSTRUCTIVE DISCUSSIONS UNDERWAY WITH US PRIVATE PLACEMENT DEBT HOLDERS, A PROCESS ALIGNED WITH AND ENHANCED BY TODAY'S OTHER MEASURES.COMPLETED ITS APPLICATION FOR ELIGIBILITY TO ISSUE COMMERCIAL PAPER UNDER BANK OF ENGLAND'S COVID CORPORATE.LAUNCHING PROPOSED PLACING OF UP TO 19.9% OF NEW EQUITY,.NET PROCEEDS OF PLACING WILL BE USED TO STRENGTHEN GROUP'S BALANCE SHEET.