My Santa wish is for Flyers Creek and a SYD-CAN battery.
On loans, I fully expect IFN to refinance at any time.
Clearing the oppressive restrictive covenant financing of the past (shudder) is proving to be a two stage process. Firstly, refinancing without the sweep clauses, still obliged to pay a high rate of interest. IFN's strong cash flows became visible and funded Smithfield, the SA battery and the reintroduction of dividends while making genuine principal repayments.
The balance sheet is a lot healthier now and the banks will be receptive to re-re-financing at competitive interest rates. It may await further corporate moves like project commitment or WF contracting. Reduced interest expense will capitalise directly into the share price.
AC, wind farms are capital intensive with very modest opex. They can support high debt levels - just look at the cash flow statement.
Capital Lite is the collision of a number of factors: there is abundant risk capital available for wind farm construction if contracted to a solid operator, IFN gets to swim upstream by firming intermittent production and controlling despatch with minimal capital spending. The Smithfield purchase will prove a singularly astute move.
Ash
IFN Price at posting:
64.3¢ Sentiment: Buy Disclosure: Held
