Something can always come out of the blue I guess and I am always concerned when the guidance is that the money will be made in the second half. On balance though down here at this price level should be a good level to be buying long term imho - unless you believe that the world is ending ... then it probably doesn't matter.
Here is an extract from the 27 March refinancing statement. The financing threshold point appears to be a capitalisation of 2.5 billion (probably USD) - that would be around a $7.50 - $8.00 share price. Most likely a level that Greenie could not have imagined in his wildest dreams - until recently.
I'm accumulating cautiously.
" ...
Extension and Expansion of Corporate Facility
The announcement today confirms that Babcock & Brown has, as part of its annual review process, credit approval and formal commitments from all participating banks to renew and extend its 3 year evergreen corporate facility from April 2010 to April 2011. The banking syndicate has been expanded from 20 to 25 banks and has approved an increase in the size of the facility from $2.35 billion to $2.8 billion. The increase in the size of the facility is commensurate with current gearing levels.
Final documentation of the increased facility is currently being completed. The expansion of the facility has been secured with only a small increase in margin which is more than offset by the decline in base rates in our key markets
outside Australia.
In recognition of its enhanced credit profile and business growth, Babcock & Brown has also received approval to materially lower the market capitalisation review threshold to $2.5 billion which approximates net asset backing. This threshold will be positively impacted by any subsequent issue of equity or conversion of BBIPL shares into Babcock & Brown Limited shares.
In addition Babcock & Brown has raised $400 million in new infrastructure asset specific debt facilities. The new facilities are secured against European wind assets which are expected to be sold as part of the 2008 asset recycling
program.
As announced on 10 March 2008, the facility now secured against the investments in its portfolio of managed funds has no market price based debt covenants that can result in an automatic event of default, acceleration, requirement to post additional collateral or immediate early repayment obligation.
..."
BNB
babcock & brown limited
