Regarding the debt of IFN - it's not unmanageable by any means. Their earnings to interest ratio is very healthy and just getting stronger as earnings increase and debt reduces.
However the debt structure is not ideal, it was mostly structured to cater for a company with global operations (like IFN was before) but now with assets in Australia only then an AUD facility in Australia would be more appropriate. Miles George said a few months ago that the focus was the refinance debt within a year or two and that this would bring the interest rate down from 7% to around 5%.
This just presents opportunity for further improvement of a profitable company. IFN is in no way too indebted (like it used to be a few years ago) and their sustainable earnings will mean that refinancing for better terms will happen before too long. I predict refinancing will happen within 12 months and hopefully we'll see good terms for project financing of their undeveloped assets too.
IFN Price at posting:
76.0¢ Sentiment: Buy Disclosure: Held
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