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07-05-2014, 01:43 PM
(07-05-2014, 01:04 PM)Greenrookie Wrote: AM fraser has a report on APTT.
See attached.
Key point:
1) There is TALK (only) of refinancing its 2020 debts so that they can payout dividends quarterly. Unless the "new" debts allow significant interest savings with the same runway to maturity (e.g.2020), I do not like the smell of it.
Quarterly, semi-annually, what is the big deal? interest costs savings should be the primarily reason, when management gave such lame reasons, I also gave me the creeps that there is something more than meets the eye. Or maybe the analyst just jumping the gun.
IIRC, it is necessary to refinance the loans since they have to start amortizing the loan principal in a ballooning profile. This will reduce the distributable income.
Disclaimer: Please feel free to correct any error in my post. I am not liable for anything. Do your own research and analysis. I do NOT give buy or sell calls and stock tips. Buy and sell at your risk. I am not a qualified financial adviser so I do not give any advice. The postings reflects my own personal thoughts which may or may not be accurate.