Further financial flexibility secured to support turnaround
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| Stock | Bapcor Ltd (BAP.ASX) |
|---|---|
| Release Time | 12 Aug 2026, 8:30 a.m. |
| Price Sensitive | Yes |
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Bapcor Secures Financial Flexibility for Turnaround
Key Points
- Bapcor's lenders approve revised covenant arrangements
- Net Leverage Ratio increases to 3.5 times adjusted EBITDA
- Fixed Charge Cover Ratio reduces to 1.30 times adjusted EBITDA
- Additional headroom aids business reset and turnaround
Full Summary
Bapcor Limited (ASX: BAP) has secured revised covenant arrangements with its lenders to support its operational turnaround. The new financial covenants include an increase in the Net Leverage Ratio to 3.5 times adjusted EBITDA by the end of 2026, reverting to 3.0 times adjusted EBITDA by mid-2027. The Fixed Charge Cover Ratio will decrease to 1.30 times adjusted EBITDA by mid-2027, before returning to 1.75 times adjusted EBITDA by the end of 2027. Kim Kerr, Chief Financial Officer, expressed gratitude for the lenders' support, highlighting the importance of the additional financial headroom.
Outlook
Bapcor aims to leverage the additional financial flexibility to execute its business reset and operational turnaround.
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