WPP AUNZ, the local arm of the world’s biggest advertising company, has moved to ensure it has access to a deep pocket of cash during the coronavirus crisis.
The company has renewed a $150 million revolving working capital facility which had been due for renewal on June 29. It is now due June next year.
WPP AUNZ has access to debt facilities of $420 million with a syndicate of five banks. All debt facilities now expire in June next year.
The company also has $228 million in cash and undrawn facilities.
As of March the company had net debt of $161 million.
WPP AUNZ has been reducing its overheads and hoarding as much cash as it can on hand.
The company in March announced that dividends would be withdrawn, a saving of $37.5 million, as a precautionary move against the impact of the coronavirus.
Staff are working reduced hours and senior executives have had their pay cut.
In February, WPP AUNZ full year posted a statutory net loss of $227.57million.
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