Well its almost time for IEF to roll over their debt. My guess...

Well its almost time for IEF to roll over their debt.
My guess is that they will get a 2/3 year extension with an increase in cost and a slightly elevated head room.
It may be the case that the bank leaves the LTV covenant as is, increases the current rate marginally (think it was circa 7% ish which shouldnt move much currently I wouldnt have thought) and sets up a tier structure for significant rate increases should the LTV be breached.

Personally I think the blowing out of cap rates has almost bottomed whilst there may be a couple of hotels in the portfolio with a little still to come out. Hopefully trading has improved for the operators over the christmas period and the portfolio will be in a better position.

Who has a prediction for share price at the end of the first qtr? I think maybe circa 30c assuming the refinancing is approved on broadly current terms.