Ann: Prospectus Supplement (ATM Facility), page-14

This is the Corporate equity version of arranging an overdraft with the bank that you don't intend to use. Its not going broke or being desperate, its around liquidity management.

If cash balances are high a company doesn't need to focus on liquidity management because they can reduce corporate balances and still have a robust cash balance to deal with any further unexpected costs. Piedmont has a lot of upcoming costs as it progresses projects so it needs to make full use of the cash balances available.

The prudent minimum operating cash balance in the absence of a facility like this measured in months of cash outflow from operations. This effectively locks away a slice of cash balances making them unable to be used. This facility adds $50m to known cash reserves able to be accessed at short notice meaning piedmont can make better use of its full cash reserve balance. There is a zone of lower cash balances where you are not accessing the facility and therefore not paying any costs associated with it, but you are gaining its benefit because it allows you to have confidence all payments required can be easily met and take cash balances to lower levels.