Yes, looking at the FY24 Annual Report, the $300m is a secured loan taken out to assist in the purchase of 30% of Tropicana. They extended the maturity date in October 2023 to 30 June 2025 but they say the syndicate, of HSBC, Macquarie and two of the big four, would be ok with them either extending it or paying it out. One of the stipulations of the deal is that the company had at least $150m in cash equivalents on 1 Jan 25 so my guess is the bankers are feeling very comfortable.
It makes sense for a company the size of Regis having debt but maybe they need to convert to a revolving or undrawn facility. It seems FY24 was the year for them sorting out their hedge book so perhaps FY25 can be about their capital structure.
If I had my druthers they would increase their Tropicana exposure, maybe to 50% (?), before they started looking further afield (a bird in the hand etc).
RRL Price at posting:
$2.71 Sentiment: Hold Disclosure: Held
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