Iceland new Super senior Facility - limited follow up from Company

All,

We received a very short response to our enquiries about the new Suer Senior Term Loan arranged by Credit Suisse.  The Company would not clarify if the HSBC facility which matures in November 2021, 4 months longer than this new facility was drawn or not.  The HSBC facility has a £120m minimum covenant but given the tailwind from increased consumer demand and the council rates holiday, this should not be in jeopardy.  

The Company just clarified that they will update the market at the end of June/early July with their full year results presentation.  

We struggle to see the reason behind the drawdown.  The Company has sufficient liquidity to meet the £40m FRN maturity in July and with an undrawn revolver should have sufficient liquidity.  We remain long the 2025 bonds and await full year results.

Tomas