Young & Co. in discussions with lenders, seeks covenant headroom

By Sarah Lizee

Olympia, Wash., March 27 – Young & Co.'s Brewery, plc said it remains in ongoing discussions with its banks and is seeking to ensure additional covenant headroom.

The board is also in the process of understanding whether it can access the Bank of England's Covid-19 corporate financing facility, according to a press release.

The company has in place £235 million of committed facilities from its banks and private placement lenders. The company's net debt to EBITDA covenant is set at 5x.

Young said it is continuing to take other appropriate measures to help reduce costs so as to conserve cash, optimize working capital and protect the company's financial position.

“All capex has been put on hold, resulting in a significant reduction in capex for FY2020/21,” the company said in the release.

“That, alongside not paying a final dividend for the year ended March 30, plus a £7 million VAT deferral until March 2021 and a £14.5 million business rates holiday, provides the group with further headroom to put it in a strong position to weather this crisis.”

The London-based company brews and bottles beer.

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