It may represent an opportuny for CCP at some stage in the future.
PNC has net debt to PDPs of 79%, which is frightening, the covenant on their loans with Fortress (200m) is 2x interest, the rate is 8.75% + minimum .25% BBSY (which would have increased significantly this year). Revenue was 54.3m in FY22, let alone EBIT which was 6.1m. I guess they are getting waivers?
I must be missing something here, but management seem to think everything is fine.
The Facility and MTNs contain covenants which are closely linked to the carrying value of the PDPs and the level and timing of PDP acquisitions and liquidations which include sales. Whilst the forecast prepared by Management using their best estimate assumptions does not indicate any covenant breaches in the period to August 2023, this is dependent on the ability of the business to operate in line with forecasts, and future market conditions which are out of the control of the Group and may be subject to change
The key assumptions underpinning the cash flow forecast are inherently uncertain and are subject to variation due to factors which are outside the control of the Group. Notwithstanding this, the Directors believe that it is appropriate to continue to adopt the going concern basis of preparation.
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)