Afterpay secures US$300m facility: Aus shares 0.04% lower at noon

Market Reports

by Katrina Bullock

The Australian share market opened higher defying negative leads from US markets and the news that the US Federal reserve will maintain current rates. The market has seen some peaks and troughs over the first 2 hours of trade and is trading 0.04 per cent lower at noon. Afterpay Touch Group (ASX:APT) has inked a US$300 million receivables funding facility with Citi. Software solutions company Bravura Solutions (ASX:BVS) has completed its $165 million institutional placement.

The S&P/ASX 200 index is 2 points down at 6336. On the futures market the SPI is 5 points lower.

Broker moves

Citi has maintained its buy position for National Australia Bank (ASX:NAB) shares and has upgraded its 12 month price target from $25.70 to $29.50. This follows the release of NAB's half yearly results which Citi says showed 'unquestionably strong capital'. Cash earnings were in line with Citi and consensus estimates. Shares in National Australia Bank (ASX:NAB) are flat at $25.70.

Company news

Afterpay Touch Group (ASX:APT) has inked a US$300 million receivables funding facility with Citi to support the expansion of Afterpay’s US business. This complements the company's existing AU$500 million receivable funding facility, and the NZ$20 million facility. The US facility is for a term of 24 months and will operate as a warehouse funding facility. The company says that the transaction diversifies its debt funding sources and provides additional tenor to its debt maturity profile. Shares in Afterpay Touch Group (ASX:APT) are trading 3.3 per cent higher at $27.75.

Software solutions company Bravura Solutions (ASX:BVS) has found itself on the worst performers list today after completing its $165 million institutional placement. The company issued approximately 28.7 million shares at the final issue price of $5.75 per new share. The proceeds will be used to fund growth related initiatives such as acquisitions, product functionality enhancements and entry into new markets and geographies. They will also be used to continue the development of their wealth management administration system, Sonata, and on the proposed acquisition of GBST should it proceed. Shares in Bravura Solutions (ASX:BVS) are trading 4.5 per cent higher at $5.96.

Best and worst performers

The best performing sector is Consumer Staples adding .5 per cent, while the worst performing sector is Energy, shedding 1.2 per cent.

The best performing stock in the S&P/ASX 200 is Orocobre (ASX:ORE), rising 8 per cent to $3.73, followed by shares in Resmed (ASX:RMD) and Pilbara Minerals (ASX:PLS).

The worst performing stock in the S&P/ASX 200 is Janus Henderson (ASX:JHG), dropping 10.5 per cent to $31.52, followed by shares in Macquarie Group (ASX:MQG) and Bravura Solutions (ASX:BVS).

Asian Markets

Japan’s Nikkei and Shanghai Composite were closed today. Hong Kong’s Hang Seng has lost 0.8 per cent.

Commodities and the dollar

Gold is trading at $US1,272 an ounce.
Iron ore last traded at $94.17.
One Australian dollar is buying 69.96 US cents.