Tabcorp: Risk of dilutionary capital raise

For those that currently hold, it might be sound financial management to keep some cash in reserve if there is a dilutionary capital raising.

TAH debt is high, they have relied on a consistent revenue stream and perceived historical ebitda to gear the balance sheet.

The problem is that this debt has debt covenants. From memory it's 4x nd/ebitda. currently tracking on around 3.2. with the government lock downs and impacts on its various business divisions expect ebitda to be hit.

TAH might be able to avoid a capital raise but suspending the dividend for a year or so, but this would also belt this stock as TAH is primarily held as a stable dividend stock.

just a heads up.
I have used the current market rout to buy the other gambling stocks but have yet to buy TAH
because of this risk