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DIS - there is a big different b/w a home loan and a $3B refinance. Quiet obviously a 5% IR won’t be achievable for companies with bad balance sheet, the 5% IR is base on companies with AAA rating and/or sovereign entities whom pretty much can be guarantee the debt will be repay, that is as close as being risk free.

When BBP re-negotiated its debt last year IR was close to 6-7% so I assume there is a mark up of 200-300 basis point, IR is now much lower so I would expect a similar drop in the cost of borrowing. Also who says they are going to be borrowing entirely from OZ, just remember US cash rate is 1-2% (sorry can’t remember), therefore if you are a strong reputable company you may be able to deal with e.g. US investors by offering loan notes at a higher premium than the US risk free cash rate. Our company did a similar exercise last year as an alternative to source cheaper debt.

Tanzim I think because BBP is a distress seller, I don’t really think they are in a position where they are able to negotiate a good price, therefore 40 cent is a more realistic/optimistic number.

This is just my opinion, please DYOR.