Fletcher Building Update on Banking Agreements

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
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Fletcher Building Update on Banking Agreements

Auckland, 3 June 2024: Fletcher Building Limited (the “Company”) today announced
amendments to its banking agreements which will extend the tenor of its debt facilities,
and enable it to rely on more favourable terms for covenant testing through to the end
of calendar 2025 if required.

Acting CEO Nick Traber said: “Given the current market environment and outlook, we
have taken pre-emptive steps to reinforce the Company’s resilience for the medium-
term to position ourselves to navigate the tougher trading conditions.

“With between $0.8 billion and $0.9 billion of liquidity expected at 30 June 2024 we have
a solid liquidity position, and have today announced agreements with our lending
partners which reflect their ongoing support and confidence in Fletcher Building.”

The Company has entered into two agreements with its lenders.

First, the Company has agreed with its Syndicated Facility Agreement (“SFA”) lenders
to refinance Tranche D of the SFA. This A$674.5m facility was scheduled to expire in
October 2025. The agreement extends the expiry date for this facility into two longer-
dated maturities: A$424.5 million will now expire in July 2027, and A$250 million will
expire in May 2029. The agreement significantly improves the tenor of the Company’s
funding lines, such that the next material debt maturity is in FY27.

Secondly, Fletcher Building has agreed certain amendments with all of its lenders (SFA,
Club Loan, and USPP) which will enable it to rely on more favourable terms for
covenant testing for its Senior Interest Cover and Senior Leverage covenants for the
period from June 2024 to December 2025 (inclusive) if required. Should the Company
need to rely on the amended covenant levels, it will not pay a dividend until it agrees to
be tested by, and complies with, its existing covenant levels. The existing and amended
covenant levels are shown in the following table:

Covenant
Existing
Level
Amended Level (if Required)
Level for
Jun-26+
Jun-24 Dec-24 Jun-25 Dec-25
Senior Leverage <3.25x <3.25x <3.5x <3.5x <3.25x <3.25x
Senior Interest Cover >3.0x >2.5x >2.25x >2.25x >2.25x >3.0x
Total Interest Cover >2.0x Unchanged at >2.0x >2.0x

NB: the Senior Interest Cover covenant of >3.0x (existing and Jun-26+) is the level contained in the USPP lending
agreements. The covenant in the SFA and Club Loan agreements is >2.75x.

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand
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The Company confirms that it expects to be in compliance with its existing covenant
levels at June 2024.

#Ends

Authorised by:
Haydn Wong
Company Secretary

For further information please contact:

MEDIA
Christian May
General Manager – Corporate Affairs
+64 21 305 398
Christian.May@fbu.com
INVESTORS AND ANALYSTS
Aleida White
Head of Investor Relations
+64 21 155 8837
Aleida.White@fbu.com