FirstGroup PLC US CERTS funding awarded to Greyhound
30 Septiembre 2021 - 01:00AM
UK Regulatory
TIDMFGP
FIRSTGROUP PLC
US CERTS FUNDING AWARDED TO GREYHOUND
FirstGroup plc announces that its Greyhound subsidiary has been awarded an
initial funding grant of $84.6m from the first tranche of the US Department of
the Treasury's Coronavirus Economic Relief for Transportation Services
('CERTS') scheme, which is part of the US Government's recent legislative
activities. The Treasury has also advised that Greyhound will be eligible for a
further award under the second tranche of CERTS funding, which is expected to
be approximately a fifth of the size of the first.
The CERTS scheme is intended to support a range of transportation service
providers affected by the coronavirus pandemic and is likely to result in an
increase to service provision across the motor coach industry in the US.
Greyhound is the largest operator of scheduled intercity coaches in the US and
has continued to provide these important services throughout the pandemic,
maintaining the integrity of its network. In line with the terms of the CERTS
scheme, these funds must be used in the next twelve months. The funds may only
be utilised in the Greyhound business in the US, with 60% of the grant required
to be spent on ongoing qualifying payroll costs. The balance may also be used
for operating, maintenance and other costs.
In addition to the second tranche of CERTS funding which the Treasury expects
to allocate shortly, Greyhound also remains eligible to receive further funding
from other US federal schemes such as the CARES Act (which makes funds
available to state agencies to maintain operation of intercity rural bus
services during the pandemic), and the American Rescue Plan (which serves to
mitigate losses arising from the beginning of the pandemic until the award of
CERTS funding).
As previously stated, Greyhound remains non-core to the Group and the Board
continues to pursue all exit options for the business with sale discussions
ongoing.
Contacts at FirstGroup: Contacts at Brunswick PR:
Faisal Tabbah, Head of Investor Andrew Porter / Simone Selzer
Relations Tel: +44 (0) 20 7404 5959
Stuart Butchers, Group Head of
Communications
corporate.comms@firstgroup.com
Tel: +44 (0) 20 7725 3354
Notes
Legal Entity Identifier (LEI): 549300DEJZCPWA4HKM93. Classification as per DTR
6 Annex 1R: 2.2. This announcement contains inside information. The person
responsible for arranging the release of this announcement on behalf of
FirstGroup is David Isenegger, Group General Counsel and Company Secretary.
FirstGroup plc (LSE: FGP.L) is a leading private sector provider of public
transport services. With £4.3 billion in revenue and around 30,000 employees,
our UK divisions transported nearly 700,000 passengers a day in the 52 weeks to
27 March 2021. First Bus is the second largest regional bus operator in the UK,
serving two-thirds of the UK's 15 largest conurbations with a fleet of c.5,000
buses. First Rail is the UK's largest rail operator, with many years of
experience running long-distance, commuter, regional and sleeper rail services.
We operate a fleet of c.3,750 rail vehicles on four contracted operations
(Avanti, GWR, SWR, TPE) and two open access routes (Hull Trains and Lumo, our
new East Coast service launching later in 2021). We also operate Greyhound, the
only national operator of scheduled intercity coaches in the US, with a unique
network of 2,300 destinations and an iconic brand. We create solutions that
reduce complexity, making travel smoother and life easier. Our businesses are
at the heart of our communities and the essential services we provide are
critical to delivering wider economic, social and environmental goals. We are
formally committed to operating a zero-emission First Bus fleet by 2035 and to
cease purchasing further diesel buses after 2022; and First Rail will help
support the UK Government's goal to remove all diesel-only trains from service
by 2040. Visit our website at www.firstgroupplc.com and follow us
@firstgroupplc on Twitter.
END
(END) Dow Jones Newswires
September 30, 2021 02:00 ET (06:00 GMT)
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