Autobarn owner Bapcor (ASX:BAP) has secured approval from all lenders in its debt syndicate to temporarily raise its net leverage ratio covenant to 3.5 times adjusted EBITDA for the Dec. 31, 2025, and June 30, 2026 testing points.
The move gives the auto parts supplier additional financial flexibility ahead of returning to its existing three-times covenant next year.
The announcement follows last week’s downgrade of Bapcor's FY25 guidance after softer-than-expected trading in October and November.
The company also confirmed the appointment of new CEO Chris Wilesmith on Dec. 18, signaling a renewed focus on operational and financial performance.
"We are pleased that the lending syndicate continues to support our turnaround program to improve operational and financial performance," said Bapcor CFO Kim Kerr.