Bapcor Secures Lender Support to Temporarily Lift Leverage Covenant.
Bapcor Limited (ASX: BAP) has received approval from its lending syndicate to temporarily increase its Net Leverage Ratio covenant, providing additional balance sheet flexibility as the Company progresses through its turnaround program. Under the revised terms, the covenant has been lifted to 3.5 times adjusted EBITDA for the testing periods at 31 December 2025 and 30 June 2026, before reverting to the existing limit of 3.0 times thereafter.
Management noted that the amendment reflects ongoing lender confidence in Bapcor’s strategic and operational initiatives aimed at improving financial performance. The increased covenant headroom is expected to support near-term execution of restructuring and efficiency measures while maintaining compliance with debt obligations.
Chief Financial Officer Kim Kerr highlighted the continued backing of the lending group as an important enabler of the Company’s recovery efforts. Overall, the covenant relief strengthens Bapcor’s financial flexibility during a critical phase of its turnaround, while preserving the existing long-term leverage framework once performance stabilises.
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Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
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Bapcor Secures Lender Support to Temporarily Lift Leverage Covenant.
Bapcor Limited (ASX: BAP) has received approval from its lending syndicate to temporarily increase its Net Leverage Ratio covenant, providing additional balance sheet flexibility as the Company progresses through its turnaround program. Under the revised terms, the covenant has been lifted to 3.5 times adjusted EBITDA for the testing periods at 31 December 2025 and 30 June 2026, before reverting to the existing limit of 3.0 times thereafter.
Management noted that the amendment reflects ongoing lender confidence in Bapcor’s strategic and operational initiatives aimed at improving financial performance. The increased covenant headroom is expected to support near-term execution of restructuring and efficiency measures while maintaining compliance with debt obligations.
Chief Financial Officer Kim Kerr highlighted the continued backing of the lending group as an important enabler of the Company’s recovery efforts. Overall, the covenant relief strengthens Bapcor’s financial flexibility during a critical phase of its turnaround, while preserving the existing long-term leverage framework once performance stabilises.
Customer Notice:
Nextgen Global Services Pty Ltd trading as Kapitales Research (ABN 89 652 632 561) is a Corporate Authorised Representative (CAR No. 1293674) of Enva Australia Pty Ltd (AFSL 424494). The information contained in this website is general information only. Any advice is general advice only. No consideration has been given or will be given to the individual investment objectives, financial situation or needs of any particular person. The decision to invest or trade and the method selected is a personal decision and involves an inherent level of risk, and you must undertake your own investigations and obtain your own advice regarding the suitability of this product for your circumstances. Please be aware that all trading activity is subject to both profit & loss and may not be suitable for you. The past performance of this product is not and should not be taken as an indication of future performance.
Kapitales Research, Level 13, Suite 1A, 465 Victoria Ave, Chatswood, NSW 2067, Australia | 1800 005 780 | info@kapitales.com.au