Emeco increases liquidity

EQUIPMENT company Emeco has reached agreement with lenders to increase its revolving credit facility from A$65 million to $100 million.
Emeco increases liquidity Emeco increases liquidity Emeco increases liquidity Emeco increases liquidity Emeco increases liquidity

Staff reporter

The facility remains undrawn, but the company said the higher limit gave it flexibility.

"The increased RCF limit provides the company with increased liquidity and flexibility reflective of the growth and financial strength Emeco has achieved since it first established the [facility], and facilitates the continued growth of Emeco," Emeco managing director and CEO said.

"Notwithstanding our upsized limit, Emeco remains committed to its deleveraging strategy, with leverage expected to be 1.5x by the end of FY20, and targeting 1.0x by the end of FY21.

"The additional funding limit demonstrates the strength of the business and support of our lenders."

Net leverage at the end of FY19 was 2.0x.

Emeco shares closed at $2.19 yesterday, valuing the company at $707.8 million.

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