that article is correct it seems that the big 4 banks didn't bite so we are at the second tier - How does that save money as private equity normally has to pay mezzanine rates. That's not a great outcome in my opinion. I just don't see the benefits of doing it this way - with 12c free cash flow last year and debt dropping I would prefer them doing another rights issue as part of the dent funding so that it becomes easily bankable for the big 4 banks.
Surely if they raised another $150 million the dent could be sorted out as part of that. process - They could then project distributions etc as the cash flows must be getting easier to predict with dent dropping.
I am not sure management are thinking like investors yet, more like corporate administrators - I thought that they would have realised that these types of investments do very well with SMSF's and retirees where they can see the money every 6 months. Time to make this a return paying investment and if that means raising a bit of capital to get the interest rate and risks down than I want that now...
I would much rather have a 60c stock and paying 3c per annum then where are now and if the capital was higher and more projects on board I would be even happier. This limbo has gone on for far too long.
IFN Price at posting:
67.5¢ Sentiment: None Disclosure: Held