Originally Posted by
Traderx
Hi all, interested in your take on the balance sheet "strength" and the ability to repay the bonds due 31 March next year - $100m
There is essentially no cash on the balance sheet, appears that the use the bank facilities as a from of revolving credit. As at 31 Dec they appeared to have c. $84m of headroom in this facility (limit $200m, $114m of non bond borrowings). The facility reduces to $150m in July 2021 (i.e just after bond due). The whole facility expires in July 2022.
Cashflow appears positive, and may remain so over coming 1-3 months.
My questions
If sport gets cancelled long term will SKT receive any compensation for rights? What is the ability to pay from sports? Have they paid upfront or is there a run rate component?
What is scenario where SKT cant repay the bonds?
What is ability for SKT to screw bondolders in some way other than in a receivership or other process?
I'm consider buying bonds at current 60-70% yield for next 12 months
Interested in your thoughts?