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Been looking at what the conditional $458m sale means for KPGs debt profile. Yesterday they said cash would be used to pay down debt (which would take gearing down to a fantastically healthy 25%).
As at the last report, Sep 30th 2023, they had $1,105 million in debt. This was split as follows:
$605m in bank debt
$500m in bonds
The bonds have a lower average interest rate, so the $458m will likely all go towards the outstanding bank debt, which would bring it down to ~$150m range.
However there will likely have been somewhere north of $100m in capex between Sep 30th 2023 and the deal closing (most of that towards finishing BTR1) , so bank debt may still remain above $200m perhaps post transaction.
So presuming they put all the cash towards reducing debt, that should be somewhere above $725m post deal, with a gearing ratio around 27.5%
Last edited by LaserEyeKiwi; 17-05-2024 at 03:05 PM.
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