suspension time frame...?, page-24

muppet55,

Since it's presumably compounded it would actually be 57% per year, but that's only if it's all drawn down at once. If the bulk of the facility is not drawn down until later in the year they won't be paying anywhere near that much - maybe 20-30%.

However you also have to keep in mind that the alternative would have been raising equity and that would have taken a big hit to the SP - they would have been looking at somewhere around 5c.

So if we assume a 25% net interest rate on shares 7c then they are raising the new shares at approx 9c.

So 9c looks a lot better than 5c...