Asian Pay Television Trust (APTT)

[Greenrookie]

I got this from DBSV Initiation Report pg 31 (dated 14 August 2013):

Debt amortisation will not be significant. The current amortisation profile is back-ended, and initially there is no loan amortisation required till 1Q14. Even in FY14-15, loan amortisation is less than 1% p.a. and we believe the Trust will refinance the credit facilities sometime in 2015 to further stretch out the amortisation profile.

Hi Nick,

IMHO, I think the discrepancy of what is described in the prospectus and what is said in the report in too large.

In the prosepctus,
"The outstanding amount under the Term Loan Facility will be amortised on a quarterly basis over a period of seven years in accordance with an agreed amortisation schedule with a final repayment of all outstanding principal on the final maturity date, which will equal 44.5% of the total loan amount drawn under the Term Loan Facility."

I take that to mean they will start repaying from the first quarter through the 7 years. Granted, they mentioned about a agreed scheduled, but with reference to the above clause, I thought the schedule, will talk about the amount to be ammortized and not the time. I can't find details of the schedule in the prospectus.

I have email the IR regarding this discrepancy, the funny thing is they send an reply asking for my phone number so that they could contact me, which I duly supplied, although I did ask why they could not give an email reply.

I have not heard of them yet, if they do reply, I willl post their reply here. If I don't, means they do not want to reply me.

side calculations,

If they ammortize they loans from the first quarter, such that 54.5% of loan is repay over 7 years, they need to fork out 18 SGD million every quarter.

If like what the report says, they only do it it 2014, then the sum will be even bigger. If they do only token amortization and then refinance the loan in 2015 as per stated in the report, then they are paying lipservice when they say they want to ammortize their loans, in would in fact be a refinancing when times come model very similar to reits...