Promisia Healthcare Limited logo

Breach of Banking Covenant

Debt Issuance31 August 2021PHLHealthcare

Market Announcement
31 August 2021


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BREACH OF BANKING COVENANT


Promisia Healthcare Limited (NZX:PHL) is currently completing its quarterly covenant reporting and

can advise that it has today determined that the company was in breach of one of two banking

covenants for the quarter ended 30 June 2021. The covenant relates to the requirement for EBITDA

/ Interest cover to be at least twice the interest cost.

The company was compliant with this covenant in the previous quarter. The reasons for the breach

in the June quarter are:

• Higher than budgeted losses at Aldwins House resulting from slower occupancy growth

at that facility. Core operating costs are incurred regardless of the number of residents

and growth in resident numbers spreads these costs and allows cost recovery.

• A number of one-off costs in the quarter.

The company has advised the Bank of New Zealand of the breach and has requested a waiver of this

covenant for the June 2021 quarter. The company will advise the market of its position in due

course.

The company is compliant with the total debt to asset ratio requirement of 71%. The actual total

debt to asset ratio at 30 June 2021 was 30.9%.

The company is making monthly interest and loan repayments on the due dates as required.


For further information please contact Mr Stephen Underwood, Chairman, on Ph 027 499 3387

ENDS

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