AMA Group Limited (ASX:AMA) Secures $110M Debt Facility
New Debt Facility
AMA Group Limited (AMA) has secured $110 million in binding debt facilities from two major Australian banks for a three-year term. The new facility will replace existing debt of $97.5 million due to expire on 31 December 2025 and provide sufficient funding to support the Group’s operational and growth plans.
Key Terms
The $110 million facility comprises $80 million in revolving working capital debt and $30 million in bank guarantee lines. It offers an improved cost of funds, reducing expenses by 300bps to 350bps, and provides flexible terms for future growth opportunities, including capital expenditure and strategic acquisitions. The facility also features a suitable covenant structure and does not require the disposal of ACM Parts.
Executive Comments
Group CEO Mathew Cooper said, “This is an important step that completes the recapitalisation process and positions AMA to pursue significant growth opportunities in the collision repair market. The Group is well on the way to executing these growth strategies, investing in people, facilities and customers, and this facility will support those plans. We are grateful for the support that our existing banking syndicate has provided to us, which has helped AMA to navigate and recover from a very challenging period. Finalisation of these new facilities with two major Australian banks, that are part of our current banking syndicate, shows confidence in the future of AMA, its Board and management team.”
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