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5.2¢ blue energy limited

cap raise?, page-16

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Kipper01

7,856 Posts.

616

07/03/19

19:52

Post #: 37690539
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Originally posted by dubspec ↑

they wouldn't cap raise for it. they'd project finance it with debt. the asset and and SGA from Bul as security and cashflow from bul gas sales (plus tariffs from other gas into the pipeline) would fund the debt repayments. project finance can be done with amortisation over a long period (ie, +20 years depending on contractural sales or tariffs. I was involved in financing an MBO (mgt buyout) pre gfc for a recycling asset where management was putting in $3m and the asset value was $1bn. the lesson is with stable, predictable (incl via hedging) cashflows from recession proof assets, you can do a lot with little equity.

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Thanks dubspec,

I haven't got much of a clue about these things so when somebody even explains it to me it goes in one ear and out the other!

What I do know is we have some very experienced people at Blue and they have been much busier than most here have appreciated. Whatever the pipeline stuff is all about(!), they are working hard to advance the company's interests …

Cheers,

Kip

BUL Price at posting: 5.2¢ Sentiment: Buy Disclosure: Held
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