I've been taking another look IFL's debt obligations.
As of 31 December 2019 they held cash of $68.8m and their debt to equity stood at 21% reflecting a net $443m in borrowings including lease liabilities ($355m under the SFA).
Since then they have completed the ANZ deal and where the Balance Sheet sits today I'm not entirely sure, as it is not updated in the announcement. In the original proposal IFL estimated pro forma net debt of $433m on transaction completion but the purchase price dropped from $975m to $850m after that.
They renegotiated debt into a "Syndicated Facility Agreement" on 27 October 2019. $240m revolving cash advance due Oct 2022 $357m revolving cash advance due Oct 2024 $60m multi option facility due Oct 2022
So again on the back of an envelope if we allow say a UNPAT of $200m for the combined group and have debt obligations around $450m with nothing really due until 2022 then they look reasonably safe to me in a very uncertain environment.
This is a highly cash generative business whose income will not stop during the current crisis although no doubt there will be a significant reduction in FUM.
IFL Price at posting:
$3.22 Sentiment: Buy Disclosure: Held
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