What drives Seven West Media (ASX: SWM) stock price up 6% on Friday?


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The Seven West Media Ltd The stock price (ASX: SWM) is expected to end the week in positive territory following the company’s latest announcement.

By early afternoon, shares of the media company were up 6.02% to 44 cents. This means that over the past month the Seven West Media share price has risen by almost 13%.

What did Seven West Media tell ASX today?

Judging by today’s earnings, investors are happy with the company’s efforts to improve its balance sheet position.

According to its press release, Seven West Media said it had refinanced its debt facilities into a new facility. This will reduce financing costs as well as more flexible terms for the business. The loan maturity date has also been extended until October 2024.

Financing costs for the new facility were cut in half due to a negotiated rate of 2.25% above BBSY. BBSY terms are the banknote swap bid rate, which is the interest rate used for debt financing.

Seven West Media said the consolidated facility marks an important step in managing its leverage profile. This includes reducing the company’s net debt by 57% ($ 158 million) to $ 240 million in fiscal year 21. The net debt ratio stands at 0.95x.

In August, Seven West Media reported underlying after-tax net income (NPAT) of $ 125.5 million.

Originally, the old facility was tied to COVID-era restrictions such as constraints on capital management. However, this has now been erased, giving Seven West Media greater flexibility to pursue growth opportunities.

Seven West Media’s stock price jumped 22% in 2021. If you zoom out, the stock price has done even better, accelerating 160% from the same time last year.

Seven West Media has a market capitalization of $ 655 million and approximately 1.58 billion shares listed on its ledger.

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