Key points
- New 3-year debt facilities totaling $110M from two major Australian banks
- Funds will pay out existing $97.5M debt facilities
- Improved overall cost of funds by 300-350 basis points
- Supports operational and growth plans of the Group
Full summary
AMA Group Limited (AMA) has announced that it has received binding credit approved commitments for debt facilities totaling $110M from two major Australian banks. The new 3-year debt facilities will be used to pay out the existing $97.5M debt facilities that were due to expire on 31 December 2025, and will provide sufficient funding to support the operational and growth plans of the Group. The key terms of the new facilities include a total of $110M, comprising $80M in revolving working capital debt facilities and $30M in bank guarantee lines, with an improved overall cost of funds compared to the current facilities (a reduction of 300-350 basis points). The new facilities also have a suitable covenant structure that AMA can operate within, and more flexible terms in respect of future growth opportunities including capital expenditure and strategic acquisitions. Group CEO Mathew Cooper stated that this is an important step in completing the recapitalisation process and positioning AMA to pursue significant growth opportunities in the collision repair market, with the new facilities supporting the company's plans to invest in people, facilities, and customers.
Outlook
The new $110M debt facilities will support AMA Group's operational and growth strategies, including investments in people, facilities, and customers to pursue significant growth opportunities in the collision repair market.