Eureka Group Holdings Limited (ASX:EGH) Secures $185 Million Debt Facility
New Debt Facility
Eureka Group Holdings Limited (ASX:EGH) has successfully refinanced and enlarged its existing debt facilities from $101 million to a new $185 million facility, provided by National Australia Bank Ltd and Westpac Banking Corporation.
Financing Terms
The multilateral facility is distributed across 3, 5, and 7-year periods, and includes an annually renewable $5 million working capital facility. Key financial covenants include a maximum loan-to-value ratio of 55% and an interest coverage ratio greater than 2.0 times. Additionally, the arrangement features a documented $200 million uncommitted ‘Accordion’ facility, offering flexibility for capital partnerships and funds.
Executive Comments
Chief Executive Officer, Mr Simon Owen, stated, “We are pleased with the outcome of our refinancing. We appreciate the support of our banking partners, and with their support, this upsized debt facility and the introduction of a second lender provides the Group with considerable financial capacity and flexibility to assist funding the next phase of growth. This allows Eureka to acquire, expand and develop residential communities nationally on the balance sheet or via funds and capital partnerships.”
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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