One key information from the announcement, apart from the deal...

One key information from the announcement, apart from the deal done obviously, was the debtor book (net of provision) grew from 17.3 to 19 through H1 FY16. This rate of growth matches the FY15 in $ terms. All things considered, that's pretty good.

A important fact about the Asset Secure debt facility is that, apart from the initial acquisition funding, the facility is only drawn when the debtor book goes up.

The way I factor it in valuation is: adding into the Debt when calculating EV: the 10.5+ debt utilised to fund Debtor book expansion based on your debtor growth assumption. Meanwhile adding on to EBIT line how much the expanded Debtor Book yield.

I think a high utlisation of the debt facility, i.e. fair bit of debtor growth, can be assumed. The company would not sign up for a big facility and plan to simply pay the line fee on the unutilised debt.

DYOR