Rank said the two-year agreement with Lloyds Bank will provide it with additional liquidity and also the opportunity accelerate investment in its transformation plan, when it is confident the business is delivering sustainable positive cashflows.
The new facility is subject to certain financial covenant waiver and associated conditions, including a quarterly minimum £50m cash and available facilities test. These measures are also in place across the operator’s other bank facility agreements.
Rank also has in place an existing £55m revolving credit facility and a £108.4m term loan.
Confirmation of the new facility comes after Rank last week announced that it generated an average of £8.6m in net revenue per week over the six weeks since its land-based venues in UK and Spain were permitted to reopen.
Since the reopening of UK venues, average weekly like-for-like net gaming revenue (NGR) at Rank’s Grosvenor venues was £5.5m, down 17% on the same period in 2019, but ahead of the £4.2m weekly figure it needed to break even.
Average weekly like-for-like NGR for Mecca bingo halls was £2.5m in the six-week period, down 20% from 2019 and only just ahead of the £2.5m a week needed to break even.
In Spain, average weekly like-for-like NGR for Rank’s Enracha venues stood at £500,000 in the six-week period, 34% lower than 24% but ahead of the £400,000 average weekly breakeven point.