This article is from the Australian Property Journal archive
HEALTH Club owner Viva Leisure has secured additional banking facilities from Commonwealth Bank, freeing up significant free cash flows.
The new banking facilities increase from a combined $118 million to $165 million, plus a $50 million facility.
This brings Viva’s total potential financing to $215 million, providing an additional $70 million of headroom from current borrowings, as at 30 June 2024, excluding the accordion facility.
Receiving a Credit Approved Term Sheer from CBA, should release additional free cash flows through more favourable repayment terms, leaving plenty of room for Viva to reinvest in growth and strategic initiatives.
“The support and validation from Commonwealth Bank is a major milestone for Viva Leisure, particularly with the significant increase in free cash flow, which will be instrumental in driving our strategic growth,” said Harry Konstantinou, CEO and managing director of Viva Leisure.
The core facilities include a $130 million Revolving Interest Only Cash Advance Facility for the funding of permitted acquisitions, greenfield sites and capital expenditure, as well as a $35 million Bank Guarantee facility.
With all facilities subject to covenant testing, including a Net Leverage Ratio of <2.25x and Fixed Charges Cover Ratio >1.3x.
The new terms also include reduced fees, an extension of the facility for an additional three years, and the removal of mandatory principal reductions.
“The improved terms and expanded facilities position us exceptionally well to capitalise on future opportunities, including potential expansion into New Zealand,” added Konstantinou.
Just in June, Viva Leisure raised $16 million from institutional investors to help fund the group’s expansion in Western Australia.
