Struggling travel firm Thomas Cook Group Ltd. said on Monday it had agreed to extend its credit facilities with its lending banks for a further year at a lower rate of interest than it previously paid.
The group, which last week issued its third profit warning in twelve months, said it had agreed a one year extension of its committed bank facilities to May 2014.
The funding comprises a £200-million loan and an £850-million revolving credit facility.
The margin over LIBOR has been reduced on the loan to 2.25 per cent and on the revolving credit facility to between 2 per cent and 2.5 per cent, having previously been 2.75 per cent for both.
Finance Director Paul Hollingworth said Thomas Cook had around £900-million of available cash and committed facilities.
"We are focused on reducing our debt and strengthening our balance sheet and we have a number of initiatives underway to deliver progress on this, including the disposal of certain hotel and surplus assets," Mr. Hollingworth said.
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