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A Thomas Cook shop sign is displayed outside a travel agent in Keynsham on August 13, 2008 in Bristol, England. (Matt Cardy/Getty Images/Matt Cardy/Getty Images)
A Thomas Cook shop sign is displayed outside a travel agent in Keynsham on August 13, 2008 in Bristol, England. (Matt Cardy/Getty Images/Matt Cardy/Getty Images)

Thomas Cook extends credit with lenders Add to ...

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.

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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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