Phew of general relief at Eurostar. The rail company specializing in cross-Channel high speed, bloodied by the crisis due to Covid-19, only had cash in its coffers for a few days of activity. It ended up concluding, Monday, May 17, late in the evening, a refinancing agreement with its shareholders and its banks saving it from an imminent suspension of payments.
Unveiled Tuesday, May 18, the agreement provides for the reinjection of 250 million pounds (290 million euros) in this 55% subsidiary of SNCF. First 50 million pounds (58 million euros) are provided in the form of equity by the French public rail group and the other co-shareholders, namely the Caisse de dépôt et placement du Québec for 30% associated with the British fund Hermes Infrastructure (10%) in the Patina Rail consortium and the Belgian SNCB (5%).
“Actively optimistic”
Then, Eurostar benefits from 150 million pounds (174 million euros) of bank loan guaranteed by these same shareholders and 50 million additional pounds linked to the renegotiation of an old loan taken out to acquire its high-speed trainsets. “It was not easy, but I was actively optimistic, says Jacques Damas, Managing Director of Eurostar. The green light from the French government for the SNCF to provide its share of recapitalization and its financial guarantee was the trigger, leading the other shareholders and reassuring the banks. “
With its level of activity – only one round trip between Paris and London per day against 15 to 18 before the pandemic – there was no money left in June.
In contrast, London did not put a penny into this bailout, not even in the form of bank guarantees. “The British government told us it would be there as a last resort, explains Mr. Damascus, but, having no interest in this affair, he considered that it was for the French to act first. That said, basically, I prefer the support of my shareholders to the public charity of the States, which rarely goes without compensation. “
It was time for Eurostar. The company had warned at the start of this year that with its level of activity – only one round trip between Paris and London per day against 15 to 18 before the pandemic – there would be no money left in June . Over the course of health restrictions, often taken at the wrong time on both sides of the Channel, the company considers that it has suffered a greater drop in customers than any other European rail operator or competing airline.
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