WPP AUNZ has renewed and extended its debt facilities with a syndicate of four banks to provide "stability and flexibility" to drive growth.
The core debt of $420 million is made up of:
- $270 million three -year term facility, with maturity extended to August 2023 from June 2021.
- $150 million rolling annual working capital facility, with maturity extended to August 2021 from June 2021.
CEO Jens Monsees says extending debt facilities reduces financial risk and provides stability and flexibility to drive growth.
"Through this challenging economic and operating environment, we have taken a conservative approach to our financial position," he says.
"We would like to thank our banking partners for their support which demonstrates their confidence in our transformation strategy and future direction.”
WPP AUNZ is due to announce half year results later this week, which are expected to be stronger than expected during the economic fallout from COVID-19.
Based on an early assessment of the June results, headline EBIT (earnings before interest and tax) for the six months is now expected to be within a range of $10 million to $14 million, above the previous guidance of between breakeven and a $10 million loss.
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