The wording of these note buy backs is quite confusing, they are stating the remaining purchase amount in the original value of the notes, not what they are paying for them. For the Q2 update they stated that $42.8 million of original prinicipal had been brought back. They paid $129.3 million for these 176.5 notes, and have since then purchased more. Thus, $130 million out of 1st FY23 NPAT leaves a lot for a div.
However, As of 3/3/2023 have bought back 364 notes for a total of $253.9 million. Buyback of notes to end on 14th March and there are 173.5 notes remaining, which at current prices would cost roughly $110 million. Thus say in TOTAL $370 million would be spent (not that I think all will be purchased in the next two weeks) on notes repurchasing. Thus roughly half of 1st FY23 NPAT to repurchase all notes - but still room for a large div + NAC3 capital requirements??
Thus for the interim div I am wondering if they will deduct note buybacks (post 1st half 2023 financial) from the second half FY23 payout, or the first half.
Either way I thought the notes repurchasing was slightly more expensive before I calculated it; thought I'd share this to help others.
NHC Price at posting:
$5.77 Sentiment: Hold Disclosure: Held
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