Ann: Establishment of Multicurrency Debt Issuance, page-39

re: Ann: Establishment of Multicurrency Debt ... Veecat - no! you are forgetting interest. EBIT:NPAT now almost 2:1. (old = 1.5:1, never 4:3 as you assume) (CY15 EBIT Margin now 18%, CY15 NPAT margin now 9.25%)

so a 6x EBIT purchase for AUD425 (Not 500m - thats in SGD) = 12x NPAT purchase = $35m NPAT, $70m EBIT.

That answers your own question! is $70m EBIT 3.5x greater than the $30m interest bill created???? No!! Therefore buy more EBIT using equity.

There are no ongoing earnings building up in some magical cash pile!!! DPR is nudging 100%!!! That's my point exactly!

It couldn't be any simpler.

nih123 - you have confused your numbers. the TICR covenant stipulates that EBIT must be 3.5x interest. When you buy something for 5x EBIT, you are not ahead by 1.5x EBIT!!! it has nothing to do with it! only has to do with the interest you pay on the loan. (Also real EBIT, not estimated EBIT 18 months forward)

Therefore if it took $425m debt to get incremental TICR to 2.3x (70m/30m), then you will need roughly the same again to get it up over 4x (including a little breathing room, also assuming marginal EBIT multiples ever increasing as stock of centres to buy runs out...). $425m/current SP = wait for it = 100m extra shares. Unless of course you want to sign up to another SPP @ 4.60, then there will only be 92m new shares. It's your super, not mine!

Report me all you want - but please also report your inability to correctly identify the numerator/denominator.