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Healthcare

BRIEF-Informa Says Constructive Talks Underway With US Private Placement Debt Holders

April 16 (Reuters) - Informa Plc:

* FURTHER COST-REDUCTIONS, TEMPORARY SUSPENSION OF DIVIDENDS, DISCUSSIONS ON A DEBT COVENANT WAIVER AND ISSUE OF ADDITIONAL NEW EQUITY

* ENHANCED MEASURES DELIVERING £130M+ DIRECT/INDIRECT SAVINGS INCLUDING REMOVAL OF ALL DISCRETIONARY COSTS

* EXTENSION OF POSTPONEMENT PROGRAMME, WITH £460M+ OF REVENUE RESCHEDULED TO Q3/Q4 2020 AND LESS THAN 10% OF EVENTS REVENUE CANCELLED TO DATE

* IMPACT ON EVENTS-RELATED BUSINESSES (C65% OF REVENUE) HAS INTENSIFIED SIGNIFICANTLY SINCE INITIAL DISRUPTION EARLY IN Q1 IN MAINLAND CHINA

* SCALE AND BREADTH OF COVID-19 PANDEMIC HAS SIGNIFICANTLY EXCEEDED INITIAL PREDICTIONS

* NO EVENTS OF ANY SCALE SCHEDULED TO TAKE PLACE IN APRIL

* REDUCED LEVEL OF ACTIVITY IS NOW EXPECTED TO STRETCH THROUGH Q2 AND MUCH OF Q3

* TEMPORARY SUSPENSION OF DIVIDEND PAYMENTS, INCLUDING WITHDRAWAL OF 2019 FINAL DIVIDEND

* CONSTRUCTIVE DISCUSSIONS UNDERWAY WITH US PRIVATE PLACEMENT DEBT HOLDERS, A PROCESS ALIGNED WITH AND ENHANCED BY TODAY’S OTHER MEASURES

* COMPLETED ITS APPLICATION FOR ELIGIBILITY TO ISSUE COMMERCIAL PAPER UNDER BANK OF ENGLAND’S COVID CORPORATE

* LAUNCHING PROPOSED PLACING OF UP TO 19.9% OF NEW EQUITY,

* NET PROCEEDS OF PLACING WILL BE USED TO STRENGTHEN GROUP’S BALANCE SHEET Source text for Eikon: Further company coverage:

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