Fletcher Building (NZE:FBU, ASX:FBU) prepaid its US private placement (USPP) notes, secured a new debt facility, and extended its amended interest cover covenant in a bid to streamline funding, reduce leverage, and bolster the balance sheet amid ongoing market challenges, according to a Friday filing with the Australian and New Zealand bourses.

The USPP prepayment also involved terminating the related cross-currency interest rate swaps and making a make-whole payment, incurring cash costs of NZ$6.7 million and NZ$500,000, respectively, per the filing.

The company has put in place a two-year NZ$200 million club facility and extended its NZ$325 million syndicated facility agreement by four years, with the next major debt maturity falling in fiscal year 2028, the filing said.

The company has also extended its amended senior interest cover covenant through December 2026, keeping it at 2.25 times and maintaining dividend restrictions until the company returns to its standard covenant thresholds, the filing added.