The maximum NLR will be 3.75x at 30 June and 31 December 2018; 3.50x at 30 June and 31 December 2019; 3.25x at 30 June 2020; and 3.00x at December 2020 and thereafter.
Vocus Group chief financial officer Mark Wratten said: “Our new and upsized syndicated debt facility has been structured to provide Vocus with the flexibility required to execute its strategic initiatives over the coming years.
"We would like to thank our existing and new bank group partners for the strong support they have demonstrated.”
The new debt facility has a weighted average tenure of 3.4 years and the Syndicated Facility Agreement stipulates that dividends will not be paid until NLR is below 2.25x for two consecutive testing dates.
After the new debt facility was put in place, the old one, consisting of A$1.095 billion and NZ$160 million has been repaid and cancelled.
Vocus expects net debt at 30 June to be in the range of A$1.03 to $1.06 billion.
In February, when the company announced its results for the first half of the 2018 financial year, it said it said it was revising downwards its earnings guidance for FY2018, with underlying earnings before interest, taxes, depreciation, and amortisation expected to be in the range of $365 to $380 million as compared to the previously announced figure of $370 to $390 million on revenue in the range of $1.9 to $2 billion; the last figure is unchanged.
Vocus said at the time that the revision was mainly because its Australian Consumer division was set to face headwinds in H2 FY18 due to "over hedging of its energy portfolio and a change in its go to market strategy, resulting in a reduction in the amount of subscriber acquisition costs that can be deferred".