Post-BEPPA ICR is something like 1.5x, very tight.
Debt/EBITDA post BEPPA & SPARCS is close to 10.6x, a HEFTY valuation and helps explain why the equity is at 10c. Selling DBCT will help to get this down to 9.9x, a much better point in the current climate, but still very high versus comps.
If you consider BEPPA & SPARCS as equity, post-DBCT sale multiple is 7.4x, a good value. More reason why BEPPA will convert to equity.
COMPS (Net Debt/EBITDA):
Asciano - Ports - 6.8x MCG - Regulated Utilities - 8.4x SP Ausnet - Regulated Utilities - 5.5x DUET - Regulated Utilities (holds DBNGP with BBI) - 6.4x Challenger Infra Fund - 7.2x
All way lower than BBI.
BBI Price at posting:
8.0¢ Sentiment: LT Buy Disclosure: Held
