Young’s lenders restrict pub chain’s dividend to £5m for next year
Young’s has warned shareholders that its lenders have restricted the amount it can pay in dividends to £5m in the next financial year, as the pub chain outlined its reopening plans.
The company said it had agreed with Natwest and the holder of its senior secured notes that any shareholder payouts will not go above that level in aggregate.
However there is no restriction on Young’s recommending a final dividend with its results for the new financial year, payable in the following 12 months.
Young’s said this afternoon that it will deliver positive cash flow from May if the government sticks to its lockdown exit plan, as the pub chain said it will reopen around 140 venues on or around 12 April.
The rest of its managed estate will reopen on or around 17 May, with social distancing restrictions still in play.
The update to shareholders on reopening and dividend prospects came as Young’s announced it has secured an extension on its monthly available liquidity test up to and including March 2022, with a headroom requirement of £25.
It also said it will shortly be seeking an extension, through to November, of its £20m bilateral revolving credit facility with Natwest.
In May, the Young’s will repay the £30m borrowed through the Covid Corporate Financing Facility from existing facilities.
Following the extensions and repayments, the pub chain will have committed available facilities of £255m, it said.