- Engineering group Melrose Industries said it had agreed improved financial covenants with its banking syndicate up until the end of 2022.

Melrose said there was a 'modest' cash cost to secure the amendments, but no change to previously agreed interest rate calculations.

The company's committed around £3.2bn revolving credit facility was repayable in January 2023 and a term loan of around £0.9bn could be extended to April 2024.

'Melrose is grateful for the continued support of its lending banks which means that it has the flexibility it needs to continue to focus on cash generation and adapting the group to current market conditions,' it added.

'The new financial covenants have been designed to give Melrose considerable headroom and flexibility.'

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