Banking covenants will usually be on minimum interest cover, net debt/ebitda & p/l etc...
TPG drew down $242 Million of the $360 Million facility to pay for pipe, with the rest coming from TPG cash reserves and the remaining from the rights issue in Feb.
They will then combine the exisitng TPG debt of $58 million with pipes debt of $40 Million to the $242 Million to get $340 Million. The $20 Million buffer will be there I guess for the progress payments due over the next 12 months ppc-1 which was circa $50 million. Although they will receive payments from userrs on the cable.
TPG FY11 ebitda earnings will be circa 260 million and by adopting a multi[le of 6-7 times, the price should be in the range of $2-$240.
TPM Price at posting:
$1.53 Sentiment: LT Buy Disclosure: Held
