For holders only - reasons to hold?, page-49

• All financial covenants are to be measured quarterly commencing 31 March 2018 (previously 6 monthly);
• An Operating Leverage ratio increase for 12 months to 3.0x (previously 2.5x), reverting to 2.5x thereafter;
• A minimum budget for the financial year ending 30 June 2019 of underlying EBITDA $90 million;
• Introduction of a financial covenant based on comparing actual quarterly underlying EBITDA performance to budget,
with a 20% variance trigger;

Operating leverage is different to EBITDA to debt. Nothing I have seen suggests an EBITDA covenant is likely to be breached in the next couple of quarters.

I think the risk is reaching the underlying $72m ($90m less 20% variance) for 30/6/2019 and action will be required in the next 6 months if it looks like this wont be achievable.