G8 has repaid the $46m outstanding on the $50m secured debt facility with Bank West (CBA)
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G8 has repaid the $46m outstanding on the $50m secured debt facility with Bank West (CBA). The Bank West debt was slightly more expensive than the A$150m of notes issued recently at fixed 4.75% under the Singaporean multi-currency facility. This is not entirely unexpected and assists with lowering the overall cost of capital and simplifies the debt covenants. Now the company only has unsecured debt. The next catalyst for the company will be the draft report from the productivity commission into childcare which is due out in early July. While some investors think that the report might recommend a cut to government support, our analysis of the submissions indicated that the likely outcome of the report will be a streamlining of the payments process rather than a reduction in overall government financial support. In fact the majority of productivity commission submissions argued for an increase in government support. Research: (VIEW LINK)
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Canaccord Genuity Group is a leading independent, full-service financial services firm. Canaccord Genuity has been driven by an unwavering commitment to building lasting client relationships. We achieve this by generating value for our individual,...
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