Spire Healthcare’s lenders have agreed to waive the covenant testing required under the company’s senior facility agreement for its two scheduled test periods on 30 June and 31 December this year.
The private healthcare provoder said this waiver will provide it with further flexibility through, and in the period after, its partnership with the NHS.
The agreement signed with NHS England on 21 March will provide Spire with sufficient liquidity and financial stability during the Covid-19 outbreak.
In addition, the company has an undrawn revolving credit facility of £100 million that remains available.
The Spire Healthcare board has also decided that, due to current uncertainties, it will suspend dividend payments until the current crisis is over. The company will not be putting forward the previously announced 2019 final dividend payment of 2.5p per share.
Spire’s chief financial officer Jitesh Sodha said: “We have had constructive and helpful discussions with our group of lenders, reflecting our solid relationship with them, and would like to thank them for their support while we assist NHS England in combating Covid-19.”