Lenders approve temporary increase to leverage covenant

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Stock Bapcor Ltd (BAP.ASX)
Release Time 19 Dec 2025, 8:49 a.m.
Price Sensitive Yes
 Bapcor's lenders approve temporary leverage increase
Key Points
  • Bapcor receives approval to increase Net Leverage Ratio covenant to 3.5x EBITDA
  • Temporary increase for 31 Dec 2025 and 30 Jun 2026 testing points
  • Covenant to return to 3.0x EBITDA thereafter
  • Lending syndicate continues to support Bapcor's turnaround program
Full Summary

Bapcor Limited (ASX: BAP) has announced that it has received approval from all lenders in its debt syndicate to increase the company's Net Leverage Ratio covenant to 3.5 times adjusted EBITDA for the 31 December 2025 and 30 June 2026 testing points. This is a temporary increase from the existing 3.0 times covenant, after which the covenant will revert to the original 3.0 times. Bapcor's Chief Financial Officer, Kim Kerr, stated that the lending syndicate continues to support the company's turnaround program to improve operational and financial performance.