The BINGO Industries Ltd (ASX: BIN) share price has been a positive performer on Thursday morning.
At the time of writing the waste management company's shares are up 2.5% to $2.75.
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Why is the BINGO share price pushing higher?
This morning BINGO provided an update on its funding and current trading conditions.
In respect to its funding, the company revealed that it has secured the refinancing of its $500 million Syndicated Facility Agreement (SFA), which was due to mature on 31 August 2021.
Management believes the enhanced flexibility and capacity within the facility will provide greater opportunity for growth. Especially given how it provides additional covenant flexibility which will enable BINGO to increase its debt capacity as its earnings grow.
BINGO's Chief Financial Officer, Chris Jeffrey, commented: "We're pleased to have secured a successful debt refinancing in a challenging operating environment. The new facility is more consistent with BINGO's current scale and credit profile. This further demonstrates the strength of BINGO's business model and underlines the ongoing support we have from our expanded lending group."
What about trading conditions?
According to the release, the waste management company has started FY 2021 positively.
BINGO's key Post-Collections business, which accounts for approximately 72% of Group EBITDA, has continued its strong momentum in volumes throughout the first quarter.
Management notes that July and September were record months for volumes, with September average daily volumes 5% higher than July 2020.
However, things aren't quite as positive for the Collections business. It advised that average daily Collections volumes continue to be affected by the ongoing impacts of COVID-19 on its Victorian Building and Demolition (B&D) business and the whole Commercial & Industrial (C&I) business.
As a result, total daily volumes across the first quarter of FY 2021 were 10% to 15% below pre-COVID-19 levels.
Pleasingly, volumes have improved slightly in September and the company anticipates further improvement in activity as COVID-19 restrictions are lifted. And while prices remain below pre COVID-19 levels, they have remained relatively stable across the business, with a modest uplift occurring in September.
Speaking about the rest of FY 2021, BINGO's Managing Director and CEO, Daniel Tartak, commented: "Our views on the outlook for FY21 remain unchanged. While we have started the year well we expect COVID-19-related economic and market headwinds may continue to impact the business in FY21 and cause a softening in parts of our addressable market versus the prior year."
