Brookfield finalises $1.45b debt refi for Aveo; lenders pile in
Lenders are backing Australia’s retirement living sector.
Street Talk can reveal Canadian investment giant Brookfield has ruled off a refinancing for its senior living business Aveo after months of discussions with lenders.
The four-year, $1.45 billion deal was done at 245 basis points above the bank bill swap rate and was oversubscribed, adding seven new domestic and international lenders to its books.
The new syndicate has 16 lenders, including five underwriters – ANZ, Barclays, Malaysia’s MayBank, National Australia Bank and Westpac – and new lenders into the business and the sector.
Brookfield took over ASX-listed retirement village owner Aveo in 2019.
Gaining exposure to trends like Australia’s ageing population, urbanisation and housing availability was understood to be a key driver behind investors’ interest. Aveo has 90 retirement villages across Australia. It also plays in home care as a provider of Commonwealth-funded services in the sector.
The refinancing will help Brookfield roll over the debt that was due to mature in November 2024, while giving it dry powder to fund capacity development and working capital for future expansion.
Street Talk revealed the refinance was in the works in July with Brookfield locking in the five banks to underwrite.
Brookfield took Aveo off the ASX boards four years ago for a price that represented a $2 billion enterprise valuation or $1.3 billion equity value. The sprawling investment firm swooped in with a 28 per cent premium at a time when its target was caving under regulatory scrutiny.
Its new management team, led by former Lendlease retirement living managing director Tony Randello, has whipped it into shape. Sources said the company has hit industry-leading record unit
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