Despite commercial aerospace activities making up a small part of the firm’s revenues Thales has completed €2 billion syndicated credit facility as part of package of measures to deal with Covid 19 downturn.
“Our direct exposure to the most affected markets is limited. Our civil aeronautics businesses represent only around 12% of the Group's turnover.
However, like all industrial companies, this crisis is currently seriously disrupting production chains and project execution,” said chief executive of Thales.
Thales said as of December 31 2019, it held €2.9 billion in cash and cash equivalents and an undrawn committed credit facility amounting to €1.5 billion, maturing in December 2021.
“In order to bolster its liquidity, Thales has signed a further €2 billion syndicated credit facility. This new facility has no covenant and can be utilized in the next 12 months, with a 6-month extension option,” it said in a statement.
Despite Thales’ business being highly orientated to the defence market it said that measures implemented to limit the spread of Covid-19 have a significant impact on the Group’s production, project execution, supply chain and customers’ ability to take delivery of products and systems.
“In addition, this crisis affects demand across the Group’s markets. The greatest impact is expected to be on civil aeronautics businesses, which generated sales of approximately €2.15 billion in 2019,” the firm said in a statement.
Thales said that as of March 31 the amount of its outstanding commercial paper is €746 million, which is said was comparable to the level at December 31 2019.
While in January 2020, Thales refinanced the €500 million bond maturing on 19 April 2020. The next bond maturity is in March 2021 and amounts to €300 million.
The firm is also altering its dividend payout.