The EVT Ltd (ASX: EVT) share price is in focus as the company boosts its main debt facilities to $750 million and secures improved lending terms, signalling ongoing support for its transformation toward the hotel sector.
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What did EVT report?
- Main debt facilities increased to $750 million, up from $650 million in 2023
- Secured three-year multi-currency loan with improved margins (1.25%–2.00% vs 1.50%–3.15%)
- Current drawn debt: approximately $610 million; credit support facility drawn: $5 million
- Group cash holdings exceed $90 million
- Four major banks (CBA, HSBC, NAB, WBC) actively participated in refinancing
What else do investors need to know?
The refinancing, together with EVT's non-core asset divestment program, is designed to give the business greater financial flexibility as it continues to shift its earnings profile toward its hotel and accommodation sector. The new facility is backed by guarantees from most Australian and New Zealand group entities, and secured by property mortgages covering 14 of EVT's 34 properties, valued at around $1.1 billion.
Interest on the new loan is set according to a leverage ratio grid, with EVT anticipating a current weighted average margin of approximately 1.59% per year. This will be reassessed every six months based on updated earnings and debt levels.
What did EVT management say?
Ms Jane Hastings, EVT CEO, said:
EVT extends its appreciation to NAB, CBA, HSBC and WBC for their strong support and desire to participate as lenders for our Group. We look forward to working with all our banking partners as we continue to progress our growth plans.
What's next for EVT?
With new banking facilities in place and ample cash on hand, EVT is well-positioned to continue evolving its portfolio and investing in its growing hotel operations. Management highlighted the refinancing as a key foundation for future growth and flexibility, supporting the group's long-term strategic direction. Investors can expect further updates as EVT progresses its divestment program and seeks new opportunities within the hotel sector.
EVT share price snapshot
Over the past 12 months, EVT shares have declined 7%, trailing the S&P/ASX 200 Index (ASX: XJO) which has risen 7% over the same period.
