Does anyone know what the margin is for the Karara loan facility. I know its based on 6 month LIBOR but all my searches so far have revealed the phrase " 6 months LIBOR plus a competetitive margin".
Its an interesting question as the current 6 month LIBOR is 0.53%. I was working out the sensitivity of the net profit margin based on different iron ore prices, and the interest coverage based on the final loan amount of USD 1.816 billion.
So in GBG we have a USD denominated loan with lower base rates, a natural hedge as iron ore prices are priced in USD, the possibility of a falling AUD per several current news reports, and the potential impact on GBG's profitability based on all these factors. Coupled with their latest presentation on their 8 million tonnes p.a. output/16 million long term, and their projected costs and margins, GBG is beginning to look very interesting. So any info on their loan LIBOR margin would be appreciated.
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