Fletcher gets another temporary waiver from its lenders

Fletcher now has full access to its bank syndicate's funding.

Fletcher Building says it has gained an extension to the waivers from its lenders for breaching of its borrowing covenants to May 31.

The previous waivers had been until the end of this month and the breaches came after losses in its Building + Interiors (B+I) unit of the construction division continued to post escalating losses.

Fletcher says both its bank syndicate and its US private placement (USPP) lenders have agreed to this extension.

“Progress has been made in discussions with the lenders on amendments to the funding arrangements and the company will provide a further update once these are finalised,” it says.

“Under the terms of the new waiver, the syndicate lenders have now provided access to the company’s full syndicate funding facilities,” it says.

“The company confirms that there is no change to its estimate of full-year 2018 (before significant items) for the group, excluding B+I of $680-720 million and no change to the estimated full-year 2018 loss for the B+I business of $660m.”

Fletcher affirmed its guidance for full-year earnings before interest and tax, before one-time items and excluding B+I of $680 million to $720 million. The estimated full-year ebit loss for B+I was unchanged at $660 million.

Its shares last traded at $6.16 and have dropped 21 percent this year while the S&P/NZX 50 Index is little changed.

More to come

(Additional reporting BusinessDesk)

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