ing increased substantial holding, page-17

Afternoon cajx.

You dont think that the banks would refinance on a tiered structure as I have put forward above.
I dont think that IEF will have trouble refinancing, I am more of the view that the base deal will be similar to what they have currently and I believe that the banks will just insert a tiered premium structure to enable them to draw significant premium spread should IEF move into a technical breach position.

I am not sure the banks will be so worried about keeping current gearing levels if they can gain an added income premium should ief exceed the current gearing levels.

What do you think the spread would be on the base level (ie up to 61% LVR)?
250bps?

Whats the cash rate? 3.75% + spread 2.50% = 6.25% on $263 = 16.5m pa (circa)
I think that is possibly less than they are paying now on the Aus debt.

I think the next tier maybe an added 250bps. IE all debt above the base LVR covenant eg60% would be charged interest at 8.75% (What do you think)?

As we have discussed before Cajx I dont think the LVR will be a real issue for the bank merely a pressure point for making a swag in extra interest repayments.

All of the above is pure assumption on my behalf and I would be interested in hearing other points of view.

Cheers