Why the Perenti (ASX:PRN) share price is higher today

The Perenti Global Ltd (ASX: PRN) share price is up 1.94% today after the company announced it had successfully refinanced debt.
The post Why the Perenti (ASX:PRN) share price is higher today appeared first on Motley Fool Australia. –

man holding hard hat and giving thumbs up representing rising pilbara minerals share price

The Perenti Global Ltd (ASX: PRN) share price was higher today, up 2.2% to $1.16 at the time of writing. This came after the mining services company updated the market on its successful debt refinancing.

What was in the update?

Perenti announced that it had successfully issued US$450 million of unsecured notes in the US bond market. The initial offer of US$350 million was oversubscribed and the issue upsized by US$100 million.

The notes issue has not affected Perenti’s debt levels as proceeds will be used to repay existing borrowings. The notes are unsecured and have an interest rate of 6.5%. The company’s existing notes are secured and have a higher interest rate at 6.625%. The repayment profile has also been lengthened with repayment due in October 2025.

According to Perenti, the notes issue further strengthens its strong liquidity position. The company expects to maintain leverage of 1.3x, positioning it for growth and helping it to deliver on its 2025 strategy.

US$350million will be used to redeem senior secured notes issued by Perenti subsidiary Barminco Finance. The additional US$100 million will pay down amounts drawn under the company’s revolving credit facility.

Perenti currently has a BB rating with a positive outlook from Fitch ratings. It is rated BB by Standard and Poor’s and Ba2 by Moody’s.

About the Perenti share price

The mining services company offers services for underground and surface mining in 13 countries. It has been listed on the ASX since 1994 and was previously known as Ausdrill.

In the 2020 financial year, Perenti had record revenue of $2.04 billion, up 3.8%. The company had record underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in FY2020 of $443.8 million, up 6.8%. The company had work in hand of $5.4 billion at 30 June 2020. $1.7 billion of this was secured revenue for the 2021 financial year.

The Perenti share price is up 158% since its 52-week low of 45 cents. However, it has fallen 27.5% since the beginning of the year. The Perenti share price is down 46.79% since this time last year.

These 3 stocks could be the next big movers in 2020

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.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

Find out the names of our 3 Post COVID Stocks – For FREE!

*Returns as of 6/8/2020

More reading

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Perenti (ASX:PRN) share price is higher today appeared first on 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!