The company's senior debt syndication - worth $400 million - is underwritten, and credit approvals are said to be due by the end of this month. Because the senior debt is underwritten, G8 Education will receive its fresh funds whether the syndicating bank sells down the loan or not.
And for the junior debt facility, G8 Education also expects to get credit approvals by the end of September. The company reckons there should not be any problems raising the $100 million, although if there was a late hiccup it could instead raise the $100 million via an unsecured Australian dollar bond. Either way, it would get its $100 million in unsecured debt.
GEM Price at posting:
$1.99 Sentiment: Buy Disclosure: Held
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