so there you have it.. no cap raise for now.. they have borrowed an extra $850 to pay for debt maturities and $150mm of capex.
of course div cut to zero. a token 20% (3 month) cut in board fees and CEO salary, and a meaningful cut of 35% for opex.
(that was in my forecast)
interestingly march/april traffic below my already pessimistic forecast.
so as a bond holder i am slightly annoyed they haven't reduced the risk of their balance sheet.. but take solace in the fact that they have borrowed to pay back my Nov 2020 maturity. ( i never thought it at risk even with the previous liquidity forecasts).
In regard to the equity price, management is rolling the dice on how long travel restrictions stay in place. Debt takes away flexibility in exchange for leverage... Only time will tell if they are right.
In my humble view, they already have more than prudent financial leverage.... so they are doubling down..
I agree that the airport is a quality asset.. i just think it is over leveraged.
Good luck all!!..
The usual.. DYOR and not advice..
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