British pub operator Fuller, Smith & Turner has said that it has received a waiver from its lenders, as it launched a share sale to shore up its books in the face of massive pandemic-related losses.
The company said it expects a drop of aproximately 80% drop in sales from its pubs and hotels in the full year to March of 2021.
The London-listed company, the net debt of which has jumped to £216 million, said that it is offering 6.5 million of its Class A shares at 830 pence apiece, and also an offering of Class B shares.
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Fuller, Smith & Turner said that for each month of the latest UK lockdown it has a cash burn of between £4 million and £5 million.
The pub operator has already cut jobs, sold some businesses after a first-half loss as the coronavirus-led social distancing measures and curfews led to a shutdown of its businesses and hammered the hospitality sector.
The maturity extension and change in debt covenants is conditional on the share offer, Fuller, Smith & Turner said.
It also said that it is preparing to ensure the business reopens "strongly'.
Four-Stage Easing Of UK Lockdown
British Prime Minister Boris Johnson set out a four-stage easing of the UK lockdown in February, with hospitality venues, restaurants and pubs to be reopened from April 12 for outdoor services only.