Hi Grant,
With interest now being capitalised into the new debt facilities, would the best way to determine the annual finance cost be via a comparison of future balance sheets at different points in time? I assume these costs will bypass the P&L and CF statement, and unsure what separate disclosures may be required, if any.
Given your analysis of what a future steady state might look like I'm curious to know how likely these debt facilities can be repaid at maturity of the terms and to the extent the senior lenders will refinance. Might they have engineered the new business model so that it can produce just enough profit to service the debt with no real prospects of paying down at maturity? How would a future recap event play out if the senior lenders, who also the majority of equity holders, decided not to refinance these facilities if they couldn't be repaid in full and no other new lenders were willing to step?
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