Fletcher Building strengthens finances, simplifies funding with prepayments

Fletcher Building prepaid all outstanding US Private Placement notes on November 10, 2025, to simplify its funding mix and lower effective interest rates. This prepayment included cash costs of $6.7 million for associated cross-currency interest rate swaps and a $0.5 million make-whole payment, as the company aims to align its capital model with current operating and strategic priorities.

Further bolstering its liquidity, Fletcher Building established a two-year $200m club facility on September 10, 2025, and extended its $325m Tranche C of the Syndicated Facility Agreement for four years on October 31, 2025. The next material debt maturity is now in FY28. The company also extended its Senior Interest Cover covenant to 2.25x until December 31, 2026, reverting to 2.75x from June 30, 2027, providing additional balance sheet resilience while debt remains above the guidance range.

Fletcher Building remains committed to reducing leverage and lowering funding costs, supported by its banking partners. Managing director and CEO Andrew Reding stated these actions represent a milestone in strengthening financial foundations, improving flexibility, and supporting disciplined execution of its strategic reset.