AJ Lucas Group Limited (ASX:AJL) Completes Debt Refinancing
Debt Refinancing Completed
AJ Lucas Group Limited (ASX:AJL) has successfully extended its Senior Syndicated Finance Facility to April 2027, increasing the limit to $50 million from $35 million. This allows the Group to fully repay the HSBC Junior loan, reducing ongoing interest costs. Additionally, the Shareholder Loan from Kerogen Capital has been extended to July 2027 with significant interest reduction incentives.
Financial Highlights
The Senior Facility now offers a base rate plus a margin at least 4.75% lower than the Junior Facility, with a potential further margin reduction of up to 1.25% after the stretch period. The Shareholder Loan’s interest rate has been reduced from 18% to between 8-10% for cash-paid interest.
Executive Comments
AJL Chief Executive and Managing Director, Greg Runge, stated: “We have been successful in negotiating improvements to the terms of the Group’s finance facilities that will lead to significant savings, provide real opportunities to accelerate the deleveraging of the Group debt while offering flexibility to invest where favourable opportunities present. The improved terms of the finance arrangements reflect the Group’s capital discipline, as shown by its strategy of repaying existing debt while investing in appropriate capital equipment to sustain earnings and support future growth.”
Motley Fool contributor Kiarra Jackson 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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