Credit Suisse notes the balance sheet is starting to look...

Credit Suisse notes the balance sheet is starting to look strained. The broker estimates the company has two key covenants. One is gross debt/earnings of 2.5 times which would require, using total debt of $70.5m in FY16, at least $28.2m earnings to avoid a breach.

Assuming the facility was fully drawn to $135m, this would require earnings of $54m. A free cash cover covenant of 1.3 times requires a minimum of $35m in earnings on Credit Suisse's FY16 estimates.

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