There is $23M of debt to pay off by June 2014. The current quarter had $8M of assets repaid back into the fund. 3 more quarters of this will see the interest bearing debt paid off by Sept 2013 before the tender process even begins.
Also once this debt is paid off there will be no more interest to pay on the debt, so cashflow could if anything widen a little, maybe bringing in say $1m per quarter for 6 quarters to June 2014.
After that there is $42-43M of deferred interest still to be paid off by June 2014. Bearing in mind there is still a $10M cash buffer being held aside, plus $6M of cash inflows from excess income to add in, plus another 3 quarters of $7-8M a quarter of natural maturities from Dec 2013 to June 2014 (say) $21M, well that would only leave $6M of actual repayment to be met by June 2014.
I don't think this will be a fire sale of assets at all. Unless there is another GFC just around the corner, I can see the NAV of 40 cents being easily met and possibly closer to 45 if the longer road is taken with the fund.
I am banking of 40 cents payout at least.
MXQ Price at posting:
32.0¢ Sentiment: None Disclosure: Held
