Bedger, I'm happy to get past the argy bargy of whether official and market rates may or may not go up or down this year. I'm sure nobody knows for certain and opinion is opinion.
In respect of the Ares corporate refinance, which sopped up the original corporate finance facility and added a few bits and pieces, such as the fee to arrange the CNs, and as revealed today, the exit fee to the Turkish investment, etc.
I think we can agree the facility is at 15% for 4 years, with a review in July this year. At the commencement of the deal the volume weighted average SP for the 30 days was 48 cents. Upon discharge of the loan there is an exit fee of $25 mil multiplied by the average SP at that time, over the average SP of 48 cents. Consequently $25 mil times $x over 48 cents. If the SP is $4, then the fee would be $25 mil times 8.33333, or $208 mil. In addition to the repayment of the $150 mil principal, the $90 mil paid over the 4 years, or $448 mil repaid for a loan of $150 mil borrowed.
Is this correct?
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