InvestSMART

Fletcher Building Limited (ASX:FBU)

ALERT: Price-sensitive ASX Announcement for FBU
Current share price for FBU : $2.930 0.09 (3.17%)+
Announcement
Release
3 Jun 2024 7:30AM
Price at Release
$2.840
Full Release
download
Summary
On June 3, 2024, Fletcher Building Limited announced amendments to its banking agreements that will extend the tenor of its debt facilities and allow the company to rely on more favorable terms for covenant testing through the end of 2025 if necessary. Acting CEO Nick Traber mentioned that these pre-emptive steps are meant to reinforce the company's medium-term resilience amid tougher market conditions. The company has a solid liquidity position and has reached agreements with lending partners reflecting their confidence in Fletcher Building. The company has refinanced a significant tranche of its Syndicated Facility Agreement and amended its Senior Interest Cover and Senior Leverage covenants to more favorable terms until December 2025. The company expects to comply with existing covenant levels by June 2024.
Key Points
  • Fletcher Building Limited announced amendments to its banking agreements.
  • The amendments will extend the tenor of the company's debt facilities.
  • The company can rely on more favorable terms for covenant testing through the end of calendar 2025 if required.
  • The company's liquidity position is solid, with expected liquidity of between $0.8 billion and $0.9 billion as of June 30, 2024.
  • Tranche D of the Syndicated Facility Agreement (SFA) has been refinanced, extending its expiry date.
  • Certain amendments with all lenders will enable more favorable terms for Senior Interest Cover and Senior Leverage covenants.
  • The company will not pay a dividend if it relies on the amended covenant levels until it meets existing covenant levels.
  • The company anticipates being in compliance with its existing covenant levels at June 2024.
IMPORTANT NOTE: This information is autogenerated and has not been reviewed for accuracy or completeness. You should refer to the full announcement here for further information.