Viva Leisure secures expanded banking facilities

Viva Leisure Limited (ASX: $VVA) has secured an increase in banking facilities from Commonwealth Bank of Australia, with the new facilities expected to release significant additional free cash flows through more favorable repayment terms, providing opportunities to reinvest in growth and strategic initiatives. The new facilities include a $130 million Revolving Interest Only Cash Advance Facility for funding permitted acquisitions, greenfield sites, and capital expenditure, as well as a $35 million Bank Guarantee facility. The Company's free cash flow is anticipated to improve significantly per annum from these new banking facilities.

Executive commentary on expanded banking facilities

The support and validation from Commonwealth Bank is a major milestone for Viva Leisure, particularly with the significant increase in free cash flow, which will be instrumental in driving our strategic growth. The improved terms and expanded facilities position us exceptionally well to capitalize on future opportunities, including potential expansion into New Zealand.

Summary of Viva Leisure's expanded banking facilities

Viva Leisure (ASX: $VVA) has secured expanded banking facilities from Commonwealth Bank of Australia, increasing from a combined $118 million to $165 million, with an additional $50 million accordion facility. The new facilities are expected to significantly improve the Company's free cash flow per annum, providing opportunities to reinvest in growth and strategic initiatives. The enhanced facilities can be utilized for acquisitions, equipment, and fit-out purposes, aligning perfectly with Viva Leisure's growth strategy. Furthermore, the facilities are now available in New Zealand Dollars, opening up new opportunities for potential acquisitions and expansion into the New Zealand market. The Company's CEO and Managing Director, Harry Konstantinou, expressed confidence in the improved terms and expanded facilities, emphasizing their potential to drive strategic growth and capitalize on future opportunities, including potential expansion into New Zealand. Viva Leisure will provide further details at the Full year results release on 14 August 2024.