Ann: Good Drinks secures $12.5m facility to fund venue strategy, page-4

This is really good - I don't mind some debt. The theoretical optimal capital structure is the point at which WACC is lowest - and therefore shareholder value is maximised. The low cost of debt environment is further assisted by a tax shield as interest is deducted before tax is paid. Hopefully there's a sensible interest rate hedging policy to ensure the business is able to enjoy a "lower for longer" cost of debt.

It is also a pleasing endorsement that bankers perceive that the business has sufficient track record, revenue stability, cash generation and/or asset backing to leverage up to $26-27m.

Unlike the equity markets, banks has access to internal information, including all management accounts, internal forecasts and even the day to day cash balance with transactional accounts.

Assuming debt is fully drawn, its equivalent to ~3x Gross Debt / EBIT on current run-rate basis. Not an insignificant amount. Of course, by the time the debt is fully drawn, the EBIT / operating cash flows should be a fair bit higher, especially with additional profits from the new venue.