Trainline raises £150m for extended Covid-19 downturn

Trainline is selling £150m of convertible bonds to shore up its finances against a potential extended Covid-19 downturn in ticket sales.

The online travel ticket platform said its banks had agreed to extend a covenant waiver by a year once the bond issue is executed, giving it further breathing space.

The five-year bonds will pay interest of 1% and will be convertible into ordinary shares at a price of 50% more than the average price on 7 January. The group's shares dropped 8.4% to 437.1p at 14:04 GMT and were the second biggest fallers in the FTSE 250 index.

Trainline sells rail and coach tickets online in the UK, Europe and Asia. Its business has been hammered by Covid-19 lockdowns that have depressed ticket sales, sending it to a first-half loss in November.

The UK announced a further strict lockdown on Monday that could last several months and has told people to stay at home where possible. Other markets have imposed tight restrictions in an effort to curb a surge in infections.

The company said: "The net proceeds of the issue of the bonds will provide additional liquidity, protecting the business further in an extended Covid downturn scenario while giving greater flexibility to invest in possible future growth opportunities."

Trainline agreed a covenant waiver with its banks in April lasting until August 2021. The company said the banks had agreed to extend the waiver until 31 August 2022.