OCA - Oceania Group - retirement villages

[Poolboy]

Darn. I'm 8 and was hoping to retire at 12. But it looks like I'm going to have to clean pools for a few more years. Pity those halfwits in government have decided to have a hate campaign against us retirement home people. Oh well, they'll be gone next election.

[Habits]

It is a partial positive on an overall negative. Funding costs will increase off the back of rising interest rates. Maverick assumed all non-bond debt was subject to floating rates. However OCA have fixed some of that debt using interest rate swap agreements per the last annual report. This meant Maverick's original assessment of increased interest costs was too high - his subsequent post is correcting that in light of the swap agreements. Organisations of this size often have a treasury policy which stipulates things like fixing interest rates etc. (and FX) rather than leaving themselves exposed to the whims and fluctuations of various markets.

I see, I was thinking something along those lines and it is good of you to identify it Ferg that they have swap agreements in place. Local lenders and not foreign cash I assume otherwise OCA will need fx hedging or the interest saving would be eaten by the fall in the nzd.

[Maverick]

Perfect summary Ferg!
That's the true beauty of this forum where we can all work together for the best outcome.
" The group is smarter than any individual "

[justakiwi]

Rubbish, they have done no such thing. They have merely listened to some of the current concerns being expressed and have indicated that they need to be looked at. The Aged Care/Retirement sector is already being proactive with their 12 month trial of changes, as discussed previously. Whichever government is in after the election will have to visit these issues, along with the issue of funding. This is not a Labour issue - it is a Government issue, and it needs to be addressed.

Pity those halfwits in government have decided to have a hate campaign against us retirement home people.

Time will tell, but neither "side" should count their chickens just yet.

Oh well, they'll be gone next election.

[allfromacell]

The NZD just hit a fresh 52 week low, fortunately or unfortunately the takeover offer will be here before year end.

[Habits]

Its funny how the election is over a year away yet we have been talking about it for at least the last six months and looking forward to labour being rolled

The NZD just hit a fresh 52 week low, fortunately or unfortunately the takeover offer will be here before year end.

Do you think some might get caught out with the ol exchange rate losses?

[Poolboy]

Time will tell, but neither "side" should count their chickens just yet.

Haha, it's a better bet than buying more OCA.

In fact I'll bet you 10 to 1, how does that sound?

[winner69]

I see, I was thinking something along those lines and it is good of you to identify it Ferg that they have swap agreements in place. Local lenders and not foreign cash I assume otherwise OCA will need fx hedging or the interest saving would be eaten by the fall in the nzd.

Swaps are good for planning cash flows and getting some certainty around that ….but many forget that swaps are a zero sum game and that for every ‘winner’ there has to be a ‘loser’

Hope OCA not on the losing side of too many deals ……but then I’m told ‘heck these guys are good’ so no worries

[winner69]

Way share price going it could be the 80s soon.

NZD will probably fall more … Oceania an attractive takeover target?

Comment elsewhere was an offer at $1 could see a deal being done as many punters would be happy to be put out of their misery …….

Ridiculous …but one never knows what might happen

[mike2020]

Get outa here. It was a dollar just weeks ago. If it gets to 80 people will be filling up the diesel tank, dusting the reversing camera and cleaning the decks.