announcement out!, page-44

I know you are all waiting with baited breath to hear my views on the loan deal, so here they are:

I've had to make some assumptions about the loan to work out an interest rate, so I assumed that the US$65m is taken out in 4 equal instalments over a year, the loan is maintained for a year, then the loan is paid back (big assumption!!!) in 8 equal instalments over 2 years. Further I've assumed that as they pay it back they reduce the size of the facility so that they don't have to pay the commitment fee.

This makes the overall rate about 7% - so bang in line with what wayneo said at the time - if not the timing. Clearly if they borrow less, then the percentage rate will be significantly higher due the commitment fee and the upfront 2% charge, and the slower they pay it off the lower the overall rate, as these charges become a lower overall proportion of the interest costs.

I also note there are still conditions precedent that are unfulfilled as yet, so I await the status of those with interest. Also worth mentioning that it's a USD facility, if they were to swap it back to AUD, you'd need to add about 2-2.5% to the rate to account for that, but depends whether you want to think about it AUD or USD terms.