Applegreen agrees to extend revolving credit facility

Convenience retailer Applegreen has agreed to extend its revolving credit facility in order to provide it with greater liquidity flexibility amid the Covid-19 pandemic.

Applegreen said on Wednesday that it had converted €52.5m of an accordion facility in its existing banking facilities into its revolving credit facility, representing an increase to its committed funding through to October 2023.

The AIM-listed group added that its lenders had also agreed to "substantially relax or remove covenant conditions" for the tests scheduled at the end of each quarter up to and including June 2021.

However, while Applegreen stated it was "important" to have addition headroom in its facilities, the group did not anticipate drawing down on the funds and reiterated its view that it already had sufficient cash to weather the Covid-19 storm.

"All our sites have remained open and current trading levels are ahead of our baseline assumptions for Q2 while the reduction in our working capital levels are consistent with our expectations," said Applegreen.

"We also note that the recent easing of movement restrictions in each of our markets has resulted in increased traffic volumes."

As of 0950 BST, Applegreen shares were down 1.48% at 266p.