Ann: FY16 Earnings Guidance-SGH.AX, page-59

The Company has come out previously, in its FY2015 Annual Report, stating that it wants to maintain gearing at 30-40%. My opinion is it would be unrealistic to expect the loans to be fully repaid. However, equity has obviously been written down by ~$1bn, increasing its gearing, so it certainly needs to repay part of the facilities which is why the banks have insisted on semi-annual amortisation and converted them from revolving loan facilities to term loans. Just noting the company paid $17.6m and $13.8m in dividends in FY15 and FY14 respectively. That was 20% of NPAT. Something to bear in mind for the Companies ability to retain cash (from no dividends) and pay down debt.