npo caption Photo: Fletcher Building
Fletcher Building has simplified its funding structure as debt remains above its guidance range.
The building materials firm prepaid all outstanding United States Private Placement notes and associated cross-currency interest rate swaps at a total cost of $7.2 million, along with measures to increase its liquidity over the next three years.
Andrew Reding Photo: Supplied
Fletcher Building managing director Andrew Reding said changes to its funding structure would give it greater flexibility, lower the ongoing cost of capital, while supporting its strategic reset.
He said there were no internal concerns regarding compliance with its standard bank covenant level, but dividend payouts would be suspended as long as debt remained above its target.
"We remain committed to reducing leverage and ensuring the business is well positioned to navigate current market conditions and return to sustainable, long-term performance," he said.
"Simplifying our funding structure and extending key facilities gives us greater flexibility, lowers our ongoing cost of capital, and supports the disciplined execution of our strategic reset."
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