This article is from the Australian Property Journal archive
BUILDING materials manufacturer Fletcher Building is extending its debt maturity for three years, as the construction industry continues to regain any footing.
The group announced it is resetting its banking agreements through to the end of 2025 and extending its next major debt maturity for three years to support its resilience for the medium-term.
“Given the current market environment and outlook, we have taken pre-emptive steps to reinforce the Company’s resilience for the medium- term to position ourselves to navigate the tougher trading conditions,” said Nick Traber, acting CEO at Fletcher Building.
“With between $0.8 billion and $0.9 billion of liquidity expected at 30 June 2024 we have a solid liquidity position, and have today announced agreements with our lending partners which reflect their ongoing support and confidence in Fletcher Building.”
The first of the two agreements made with lenders, is refinancing Tranche D of its Syndicated Facility Agreement.
This $647.5 million facility was previously due to expire in October 2025 and is now being extended into two longer-dated maturities, with $424.5 million to in July 2027 and $250 million to expire in May 2029.
The second agreement is with all of its lenders and will enable more favourable terms for covenant testing for its Senior Interest Cover and Senior Leverage covenants for the period from June 2024 to December 2025 if required.
While earlier in the year, the construction company put its plumbing and bathroom supplies business Tradelink up for sale, with the non-binding indicative bids deadline coming up at the end of this week.
