The Aventus Group (ASX: AVN) share price is skirting higher during late afternoon trade following a reshuffle of its finances. Here’s the details.
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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.
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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.