Perenti Global is understood to have quietly undergone a refinancing of a sizeable amount of its debt in the past fortnight, staving off fears of an imminent equity raising.
The $1bn West Australian-based diversified mining services company, which consists of the former Ausdrill and Barminco businesses merged together, is understood to have raised about $130m through a new syndicated facility of Australian bank debt at a time many were questioning the state of its balance sheet.
The company suspended its dividend payment in March and said the coronavirus pandemic had had no impact on its performance to date.
It said then it had about $290m of cash and $90m of undrawn revolving credit facilities and access to equipment finance debt.
This was after revealing the previous month that its net debt was $62.9m.
Perenti also announced in March it would no longer explore an acquisition of Downer mining.
Despite companies approaching a blackout period ahead of full-year results being delivered in August, they are continuing to examine ways to get their balance sheets in order as they emerge from the COVID-19 trading restrictions.
Two of the companies that have remained under the spotlight are the casino operator Sky City Entertainment and the listed jewellery chain Lovisa.
A recent decline in the
share price of jewellery chain Lovisa has some drawing the conclusion the market is betting an equity raising could be on the cards.
This is as it grapples with economic hardship in many of its global markets and likely suspends its plans to roll out stores through the US.
However, sources close to the company denied it was about to tap the market, although a refinancing of debt is not off the agenda.
Sky City Entertainment is believed to be looking at a refinancing and an equity raise, with New Zealand boutique Jarden testing market interest.
UBS is also thought to be working for the Australian and New Zealand casino operator.
A plan to raise by Sky City was first tipped by DataRoom on May 11 and sources in the market expect it to be in the order of between $200m and $400m as the group has suffered revenue loss from compulsory shutdowns of its casinos due to the coronavirus pandemic.
UBS, say sources, could also raise equity for Air New Zealand, which is working with KPMG, although the expectation is most companies connected with air travel such as Qantas and Sydney Airport will have to make a cash call to investors this year.
Sims could reap windfall from land sales
Some in the market believe that Sims needs to put some more thought towards selling more assets.
Bids due for BGC building materials empire
The contest is well under way for parties to buy the $800m BGC building materials business based in Perth.