Aventus Group announced today the successful completion of $660 million of debt refinancing.
The refinance comprises 80% of the current $820 million debt portfolio and has resulted in 11 existing debt tranches totalling $660 million being consolidated into 6 tranches.
Aventus now has no debt maturing until January 2025 and extends the Weighted Average Debt Expiry (WADE) from 2.3 years to 4.5 years.
The interest rates of the new facilities are comparable with existing facilities.
There is no change expected to FY21 earnings guidance provided to the market as a result of the refinancing.
Aventus Chief Financial Officer, Mr Lawrence Wong commented: “This substantial refinancing work means we now have no debt expiring before January 2025, with our Weighted Average Debt Expiry extended to 4.5 years. 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.”
Our Views
This is a good outcome for Aventus as it secures debt at a similar cost for a longer term, reducing the risk of interest rate impacts in the medium term.
Aventus are currently in our Top Picks List.
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