SKT Sky Network Television Limited.

**peat** · 11-03-2021, 06:25 PM

just saying what I see....
its only good if they can borrow cheaper right?
(unless of course they dont need to replace it because massive cash flows)

Discl (hold)

**mistaTea** · 11-03-2021, 06:31 PM

Originally Posted by peat

just saying what I see....
its only good if they can borrow cheaper right?
(unless of course they dont need to replace it because massive cash flows)

Discl (hold)

I don't think they are planning to borrow at this stage.

They have a $200M facility (untouched) with a banking syndicate. Not sure what the interest rate would be if they needed to use it.

But their $45M CAPEX needs (which covers 'stay in buisness' and growth initiatives) is covered by cash generated from operations.

I think the $200M facility would only come into play if a very large and interesting opportunity came their way.

Unless and until that happens, it will be nice to be debt free. And that is $6.25M less a year in interest charges to look forward to.

**Snow Leopard** · 11-03-2021, 06:36 PM

Originally Posted by peat

just saying what I see....
its only good if they can borrow cheaper right?
(unless of course they dont need to replace it because massive cash flows)

Discl (hold)

@HY Cash was $123M vs Debt of $100M bonds + $1M5 other

**mistaTea** · 11-03-2021, 08:40 PM

Originally Posted by Snow Leopard

@HY Cash was $123M vs Debt of $100M bonds + $1M5 other

Yeah and the cash balance will prob be $30M+ at the FY results, and growing.

Bank facility is just good to have available for unforeseen circumstances (especially with Covid still being a threat) or opportunities that may arise.

Balance Sheet is in mint condition, thanks to the shareholder bail out.

**Ogg** · 11-03-2021, 10:33 PM

Me looking for another company on the ASX/NZX that is cash flow positive, has no debt, has a growing cash pile, pays no dividends, does no buy backs, and makes no investments or acquisitions.