MyTravel secures financial lifeline
MyTravel shares rose steeply on the back of the news that the group has secured financing for another three years following a vote by bondholders on Monday.
The bondholders voted overwhelmingly to extend the maturity date of the bonds until January 2007. A spokeswoman for the company told TravelMole: “This gives us the time and space to implement our turn around plan over the next two or three years.”
The vote means the completion of MyTravel’s refinancing plan. In June this year, the travel group secured the extension of a £1.3 billion bank loan until May 2006. The extension of the bonds means the company has access to another £221.6 million of debt until January 2007.
MyTravel says the votes cast in favour were 153,419,827, versus 500,000 against, which easily surpassed the 75% majority needed.
On the back of the announcement MyTravel shares rose over 20% yesterday, according to FT.com, ending the day at 20.75 pence.
Read our previous stories:
12-Sept-2003 Massive changes at MyTravel
19-Aug-2003 MyTravel close to finance deal
22-Jul-2003 MyTravel shares jump on finance announcement
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