Here’s why the Aventus (ASX:AVN) share price is on the rise

The Aventus Group (ASX: AVN) share price is skirting higher during late afternoon trade following a reshuffle of its finances. Here’s the details.
The post Here’s why the Aventus (ASX:AVN) share price is on the rise appeared first on The Motley Fool Australia. –

three building blocks with smiley faces, indicating a rise in the ASX share price

The Aventus Group (ASX: AVN) share price is skirting higher during late afternoon trade following a debt refinance update.

At the time of writing, the retail property company’s shares are trading for $3.00, up 1%.

What did Aventus announce?

Aventus shares are pushing higher as investors digest the company’s latest refinancing efforts.

According to its release, Aventus advised that it has successfully completed a debt refinance of $660 million. This represents 80% of the group’s $820 million debt portfolio.

Aventus stated that the refinance saw 11 existing debt tranches repackaged into 6 larger tranches. While no repayments were made, the group extended the maturity date for the debt. Currently, Aventus’ next loan (for which the principal amount must be paid in full) won’t happen until January 2025.

As a result, the company’s weighted average debt expiry (WADE) will increase from 2.3 years to 4.5 years.

The interest rates of the new debt facilities are in line with the existing tranches.

Aventus noted that even with its latest refinancing, FY21 earnings guidance will remain the same.

Aventus chief financial officer Lawrence Wong touched on the company’s progress, saying:

We are pleased that the refinancing was strongly supported by our financiers and demonstrates their confidence in Aventus and the large format retail sector. This work significantly reduces any short-term refinancing risks and allows the Group to focus on key strategic initiatives.

Aventus continues to deliver on our capital management strategy with no near-term debt expiries, lower gearing, and strong debt serviceability and ample liquidity. This leaves the Group well positioned to capitalise on future growth opportunities as they arise.

Aventus share price snapshot

Over the last 12 months, Aventus shares have been on an upward trend, gaining around 75%. Year-to-date performance is edging closer to 10% as of today. It’s worth noting that the Aventus share price is within a whisker of reaching its all-time high of $3.05.

Based on the valuation metrics, Aventus has a market capitalisation of approximately $1.7 billion, with 568 million shares on issue.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended AVENTUS RE UNIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Here’s why the Aventus (ASX:AVN) share price is on the rise appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!