Friday 2nd March 2018
|Text too small?|
Fletcher Building says it got a waiver from its noteholders in the US private placement market after losses at its Building + Interiors unit caused the company to breach its lending covenants.
The waiver is subject to conditions which Fletcher expects to satisfy in coming days. The company gained a waiver from its banking syndicate on Feb. 13.
Fletcher said it is now in talks with the bank syndicate and USPP noteholders about amendments to the terms of its funding arrangements, which chief executive Ross Taylor expects will nudge up the interest rates on the debt.
"Fletcher Building will continue to target the end of March 2018 to complete the amendment process," it said in a statement. "If the company does not agree on the amendments by 31 March, it will need to seek an extension of the waiver from the bank syndicate and the USPP noteholders."
Taylor has previously said that the strength of Fletcher's remaining business and the phasing of the cash impact of the B+I provisions "meant the company remains well capitalised and solvent."
The cash-flow impact of the B+I losses has been spread over four years. As at Jan. 31, the company had borrowing 'headroom' of $1 billion and said net debt of $2.1 billion was forecast to increase by about $250 million this calendar year.
Fletcher shares fell 1.2 percent to $6.43, with the announcement made after NZX trading closed.
No comments yet
Heartland's 1H profit dampened by restructuring, accounting changes
Hallenstein seeks new CEO; shares fall
Tower affirms earnings guidance, notes increased digital upgrade cost
NZME targets positive earnings from paywall in 2 years; profit falls
Precinct raising $150M from an underwritten placement and retail offer
NZ dollar dips from 13-day high as US holiday keeps markets quiet
February 19th Morning Report
NZ dollar rises on optimism for China-US trade deal
Steel & Tube recovery to include $5.6M of 2nd-half cost savings
Open Country challenges validity of Fonterra's 2018 milk price