13-12-2013, 01:15 PM
(18-11-2013, 02:30 PM)tanjm Wrote: [ -> ]There's an apparent contradiction in their prospectus. They state they will amortize a portion of the principal of their term loan over 7 years. However, in the 2014 forecast cashflow, I find no mention of this repayment. If someone can point me to a resolution, would be good.
Hi Tanjm,
I was reading the prospectus again, and I wonder if the amortization must be done consistently over the 7 years, can they not push backwards this item?
I ask because looking the covenants of loans:
Gross debt/EBITDA ratio not exceeding 5.75 times for the initial four quarters, gradually
stepping down to 3.0 times after the sixth year;
• Interest coverage ratio of at least 2.50 times, gradually increasing to 3.00 times after the first
2.5 years; and ----
• Debt service coverage ratio of at least 1.20 times, gradually decreasing to 1.05 times after the fourth year.
Could that be pushing backway that ammortization costs so that they can meet the projected payout in 2014??
More of a question than an answer