A new funding syndicate of 16 lenders, including five underwriters – ANZ, Barclays, Malaysia’s MayBank, NAB and Westpac - has provided Aveo with a new $1.45 billion debt facility.
To our understanding this replaces the $1.3 billion that Aveo owner Brookfield utilised in November 2019 to purchase Aveo. That facility was made up of $1 billion provided by banks and $300 million provided by Brookfield. It appears that Brookfield now has reclaimed their $300 million to make other investments.
The expanded facility also provides funding for future acquisitions and capital works in Aveo’s existing villages.
"The strong support from the debt markets reflects the significant business transformation accomplished under Brookfield ownership alongside a new management team led by CEO Tony Randello (pictured)," said a Brookfield spokesperson.
"Examples of key business transformations include two years of consecutive industry sales records being achieved in 2021 and 2022 (1,250 and 1,502 respectively), expanding the suite of resident contracts to provide greater customer choice and clarity, significant capex investment in villages which has seen independent living occupancy reach the high 90’s [%] and resolution of the long-standing class action, which plagued the value of the previously ASX-listed business prior to Brookfield’s acquisition."
An Aveo Group spokesperson said it was on track for another sales record.
The funding was achieved at 245 basis points above the bank bill swap rate and was oversubscribed, adding seven new domestic and international lenders to its books.
The Aveo refinancing represents the first move into the Australian seniors living sector for many of the new lenders.
Aveo, which has 90 retirement villages across Australia and is a home care provider, now has further liquidity for working capital and development.
