TPG's cash movements

As at 31 July 2017:

• TPG had $46.3m of cash and $872.4m of debt.
• In FY17, cash flow from operations was $722.7m.   
• Their debt facility is $2,385m of which $900m was drawn, so $1,485m remaining.
• The first repayment is due on September 2020.

So, in FY18
• I expect capex to be $1,250m (including payment for spectrum)
• I expect cash flow from operations to be $650m
• Interest expense will climb to between $45-65m
• A draw down of $655m will be required. ($830m debt facility remaining for required use)

In FY19
• I expect capex to be $852m
• I expect cash flow from operations to be $595m (there is upside to this number if mobile subscriber numbers are good)
• Interest expense will climb to between $70-90m
• A draw down of $337m will be required. ($493m debt facility remaining for required use)

I have assumed no change in payables/receivable days.  Dividends are minor.

***

We can continue on into FY20
• Capex may be around $700m
• But cash flow will increase to $650-700m, likely to be materially higher.
• Interest expense will be high at $90m+
• The net deficit is only $90-140m, with plenty of undrawn facility i.e. $493m at the end of FY19.