Is there anything stopping them refinancing the debt? There are two broker reports on the Infigen website. I note (from page 9 of the more recent broker report):
To assist in managing its significant financial risks IFN entered into a number of swap arrangements to fix its interest rates. As a consequence of these arrangements IFN has a far higher cost of funding than it should have in the current market. In 2015 the company had an average interest rate of 7.44% (inclusive of a 127 basis point margin).
This point is reinforced by the ~$95mn in derivative liabilities on the balance sheet. As IFN de-leverages and these liabilities shrink we would expect the company to look into refinancing its debt.
I'm a little confused over the significance of this statement. Thoughts?
Baron
IFN Price at posting:
$1.02 Sentiment: Hold Disclosure: Not Held
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