Hollywood Bowl (BOWL) has secured additional support from its lenders after coronavirus prompted the shutdown of its sites. The bowling operator has extended its revolving credit facility by £10m, amended its debt covenants and obtained waivers to its cashflow covenants. As of 31 March, Hollywood Bowl had around £15.6m in cash and had drawn down £30.25m in debt from its £35m facility.
IC TIP:
Buy
at
141p
The company also said that it would not propose an interim dividend. These measures, along with cost-cutting that has included a pause on refurbishments, have helped to reduce its monthly cash burn to around £2.5m. Broker Peel Hunt believes this should leave Hollywood Bowl with sufficient liquidity for a year.
