The Bear Room, page-2735

2 questions Goodfella:

Firstly, you're aware of the Corporate facility which ZIP entered into in December last year. The previous facility was $90 mil, this one went to $150 mil due to the payout of the CNs and it was struck up over 4 years at 15%, with a review in July 2024 and an exit penalty predicated on the prevailing VWAP over the VWAP on entry multiplied by $25 mil

The recent credit raise paid that facility out just prior to the review. It had a horrendous cost which had the impact of removing the corporate debt, after ZIP paid $20 mil debt down during June with cash it could not spare. If the facility ran the annual interest cost would have been $22.5 mil.

What are your views upon why that facility was paid out in such a short time?

Secondly, ZIP had a $139 mil leg up in its P&L from the write off of CNs last year. The talk has been of a profit from that negative expense item but no longer. In my estimate, it may have been extinguished with additional costs during the year, notably in the 2nd half, despite the exit penalty and a month interest kicked into the 2025 year.

Now that the final qtr figures are out there, have you monitored the outcome for the FY?