Bapcor secures lender approval to loosen debt limits

The news: Autobarn owner Bapcor has received approval from all lenders in its debt syndicate to temporarily increase its net leverage ratio covenant to 3.5 times adjusted EBITDA for the 31 December 2025 and 30 June 2026 testing points.

The context: The auto parts supplier, which announced the appointment of new CEO Chris Wilesmith on Thursday, will receive extra financial headroom under the new agreement before returning to the existing three times covenant next year.

The announcement comes after Bapcor downgraded its FY25 guidance last week after softer-than-expected trading in October and November.

What they said: "We are pleased that the lending syndicate continues to support our tunaround program to improve operational and financial performance," said Bapcor CFO Kim Kerr.