Fletcher Building has announced amendments to its banking agreements, extending the tenor of its debt facilities and securing more favourable terms for covenant testing.
The company, which expects to have between $800 million and $900m of liquidity at the end of June, entered into two agreements with its lenders.
The first agreement involves the refinancing of Tranche D of the Syndicated Facility Agreement (SFA).
This A$674.5m facility will now expire in July 2027 and May 2029, instead of October 2025.
The amendment significantly improves Fletcher Building's funding lines, with the next major debt maturity now in the 2027 financial year.
The second agreement with all lenders (SFA, Club Loan, and USPP) allows the company to rely on more favourable covenant testing terms for its Senior Interest Cover and Senior Leverage covenants from June 2024 to December 2025, if necessary.
Fletcher Building emphasised that it expects to be in compliance with its existing covenant levels at the end of June.
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