“The COVID-19 pandemic has been very challenging for Tabcorp’s people, partners and customers, and materially impacted our FY20 results,” Tabcorp CEO David Attenborough said.
“The continued significant uncertainty regarding the severity and duration of the COVID-19 impact has led Tabcorp to reconsider its previous capital management targets in order to improve its credit metrics and conserve more capital over time.”
Mr Attenborough said Tabcorp will use the $600 million in new equity to pay down existing debt, and support the move towards a deb-to-earnings gearing range of 2.5 to 3 times, from 3 to 3.5 times.
“This is expected to strengthen Tabcorp’s balance sheet, provide greater financial flexibility in uncertain times, and provide additional credit metric headroom for covenant and rating purposes,” he said.
More to come