NTAW Secures Crucial Covenant Waiver Extension with CBA to March 2026

Extension of Waiver Signals Continued Support

NTAW Holdings Limited (ASX – NTD) has announced an extension of the waiver on financial covenant defaults granted by Commonwealth Bank of Australia (CBA). Originally set to expire at the end of 2025, the waiver now extends through to 31 March 2026. This development underscores CBA's ongoing support for NTAW as the company navigates its current trading environment.

Progress on Debt Reduction

Since 30 June 2025, NTAW has made significant strides in reducing its debt, repaying $12.3 million of its borrowing facility. Alongside this, the overall borrowing limit with CBA has been trimmed by $13 million, reflecting a more conservative credit exposure from the bank. Despite these changes, the borrowing facility remains active with an expiry date set for 30 September 2027, providing NTAW with a degree of financial flexibility moving forward.

Implications for Financial Health and Market Confidence

The extension of the waiver and the ongoing repayments suggest a cautious but constructive approach to managing financial obligations. While the waiver protects NTAW from immediate covenant breaches, it also highlights the company’s need to maintain close alignment with lender expectations. Investors will be watching closely to see if NTAW can sustain this momentum and avoid further covenant pressures as it heads into 2026.

Looking Ahead

With the borrowing facility secured until late 2027 and CBA’s continued backing, NTAW appears positioned to manage its financial commitments prudently. However, the lack of detailed financial metrics in the announcement leaves some uncertainty about the company’s broader financial health and future performance. Market participants will be keen to see how NTAW balances repayment efforts with operational growth in the coming months.