Cabonline EBITDA, Revenue Decrease and Covenant Waiver
Reporting a 44% year over year revenue decrease, from 1.8 billion Swedish kroner to 997 million, as well as an EBITDA of negative 11 million Swedish kroner and a very illiquid bond maturing in 2022, Nordic taxi company Cabonline’s bond has fallen to 70. The decrease in demand from travel restrictions due to the Covid-19 pandemic have taken a toll on the company, but these impacts are reportedly not as bad as other companies in the same industry because of the “public service” nature of Cabonline. Even so, the company saw a negative cash flow of SEK 52 million in the fourth quarter and assuming the travel restrictions are not lifted in the coming months, Cabonline should have sustainable finances for about 12 months.
The company has secured a covenant waiver as well as an amendment to their covenant test dates and in December, Cabonline was financially comfortable under their covenant threshold, which states that they need to maintain an average liquidity position of more than SEK 125 million. This covenant will be tested at the end of every month until September 2021. Read more about the company’s recent financial performance and outlook as well as the amended ratio for Cabonline’s covenant tests moving forward: https://reorg.com/new-coverage-cabonline-sek-1-8b-bond-falls-to-70-after-negative-q4-adj-ebitda-of-sek-11m-net-leverage-hits-11-7x/