Fuller’s has announced its board has approved the issue of commercial paper under the Covid Corporate Financing Facility (CCFF) for an initial loan of £100m.
The move comes as the group said its management has taken additional precautionary measures to ensure it is “in the best possible financial position”, with maximum flexibility in light of continued uncertainty.
The pub operator said that the funding would enable it to leave the majority of its £155m revolving credit facilities undrawn, whilst giving the group “significant” liquidity headroom to “successfully navigate the months ahead”.
In addition, the pub operator said that it was “well-financed” with a “healthy” balance sheet, as well as an “excellent relationship” with its lending banks.
The group said that “constructive discussions have led to appropriate amendments to its banking agreements”, and as a result, its upcoming quarterly covenant tests will focus on liquidity headroom metrics, a “more appropriate measure” its sites remain closed.
In its latest update, the operator said that both moves further underpin its confidence that Fuller’s has “sufficient” liquidity headroom to sustain it through a period of continued uncertainty.
It also follows the existing cost reducing initiatives that include the furlough of 96% of its staff, a voluntary pay reduction by executive and board members, a reduction in outgoings across the business, the suspension of all non-essential capital spend and negotiations with its supplier base to reduce costs further.