The Agency Group (ASX:AU1) has successfully negotiated improved terms for its secured debt facility with Macquarie Bank, signalling confidence in its financial performance and future prospects. The real estate company specialises in residential and commercial property sales, leasing, and property management services. Operating across major Australian cities excluding Adelaide and Darwin, The Agency aims to provide comprehensive property solutions to its clients.
The revised agreement includes a reduction in the interest rate margin and extends the facility’s maturity to June 2028. Additionally, a $1.6 million drawdown has been incorporated into the terms to facilitate various growth initiatives. These changes are expected to provide The Agency with enhanced financial flexibility as it pursues strategic expansion opportunities in the competitive real estate market.
Furthermore, The Agency has streamlined its financial covenants, removing the interest cover ratio and implementing a more adaptable minimum liquidity requirement. Concurrently, an agreement has been reached with Peters Investments to extend the maturity of its convertible notes to December 2028, pending shareholder and regulatory approvals. Approval of this extension could see Peters Investments increase its voting power to 54.09 per cent through note conversion and interest repayment in shares.
According to Chairman Andrew Jensen, these strategic financial adjustments are set to bolster the company’s balance sheet, equipping it with the necessary flexibility and assurance to embark on its next phase of growth. In afternoon trade, The Agency’s stock reflected positive investor sentiment, rising by 4.2 per cent to 2.5¢ following the announcement.
