AMA Group has raised $150m to permanently repay $73m in debt facilities and provide $69m in working capital. The intentions are to reduce net debt, lengthen debt duration and improve liquidity.
Bank debt facilities are being restructured with no facility maturing before October 2024 and the first covenant test to be June 2022. The company has outlined a medium-term target of 180 sites and $1bn or more in turnover. UBS retains a Neutral rating and $0.45 target.
Sector: Retailing.
Target price is $0.45.Current Price is $0.42. Difference: $0.03 – (brackets indicate current price is over target). If AMA meets the UBS target it will return approximately 7% (excluding dividends, fees and charges – negative figures indicate an expected loss).
