NTAW’s Covenant Waiver Extension: Temporary Relief or Warning Sign?
NTAW Holdings has secured an extension on its financial covenant waiver from Commonwealth Bank, easing short-term borrowing pressures while continuing debt repayments.
- Commonwealth Bank extends waiver on financial covenant defaults to December 31, 2025
- NTAW repaid $11 million of its borrowing facility since June 2025
- Overall borrowing limit reduced by $13 million
- Borrowing facility remains active until September 2027
- CBA signals ongoing support aligned with NTAW’s trading environment
Background on the Waiver
NTAW Holdings Limited (ASX, NTD) has announced that the Commonwealth Bank of Australia (CBA) has agreed to extend its waiver of financial covenant breaches on NTAW’s borrowing facility until the end of December 2025. This follows an earlier waiver that covered defaults up to September 30, 2025. The extension reflects CBA’s continued support amid NTAW’s current trading conditions.
Repayment Progress and Facility Adjustments
Since the end of June 2025, NTAW has made significant progress in reducing its debt, repaying $11 million of the borrowing facility. Alongside this, the overall borrowing limit with CBA has been lowered by $13 million, indicating a recalibration of the credit line in line with the company’s financial position and repayment trajectory. Despite these changes, the borrowing facility remains in place with an expiry date set for September 30, 2027.
Implications for NTAW and Investors
The extension of the waiver period provides NTAW with breathing room to manage its financial covenants without triggering defaults, which could otherwise complicate its credit standing or lead to renegotiations. CBA’s willingness to maintain the facility and extend the waiver signals confidence in NTAW’s ability to navigate its current challenges and aligns with the company’s ongoing efforts to strengthen its balance sheet.
However, the announcement stops short of detailing the specific covenant terms or the conditions attached to the waiver extension, leaving some uncertainty about the company’s medium-term compliance outlook. Investors will be watching closely for updates in upcoming financial reports to assess whether NTAW can sustain this momentum and avoid further covenant breaches.
Looking Ahead
With the borrowing facility secured through 2027 and the waiver extended, NTAW has a window to stabilise its financial position. The company’s repayment plan and ongoing dialogue with CBA will be critical in shaping its credit profile and investor confidence in the months ahead.
Bottom Line?
NTAW’s extended waiver offers short-term relief, but the path to full covenant compliance remains a key watchpoint.
Questions in the middle?
- What specific financial covenants remain at risk beyond December 2025?
- How will NTAW’s repayment strategy evolve to meet future covenant requirements?
- Could further adjustments to the borrowing facility terms be necessary if trading conditions change?
