Do some reading and you'll find SKI management is not guaranteeing anything when it comes to distributions.
The reduction in the value of the loan note from 125c to 65c is to reduce the interest component of distributions (13.6c down to 7.1c). Other income will be marshalled to help fund capex and costs, ie it's not coming to securityholders either.
Why the assumption capex will slow in a few years time? From what I've read and heard the expansion, upgrading, repair and replacement of the grid and its components stretches way into the future.
Another thing is SKI's debt profile means some of its refinancing will take place in a, hopefully, more normal world. A world of more competition for debt with higher interest rates.
18% yields? I think we'll do well to get half that at the present sp, not forgetting some of us have ownership costs higher than for those buying in now. Our yield will be much lower.
Do some reading and you'll find SKI management is not...
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