Worst case scenario would be that they have to issue more shares, but as long there are realistic plans to reduce debt i dont see it coming to that.
Part of the reason debt levels are nearing their ceiling is because a temporary increase to acceptable debt is being reduced (from when Nextgen was acquired). We are spending a lot on ASC but it doesn't qualify for an extension like Nextgen.
Keep in mind, Vocus is profitable, and relatively stable business, if it was a mining company running at a loss propping itself up with debt it would be different story, but its the opposite, debt is increasing to pay for long term tangible assets to increase earnings and improve margins.
One thing i have heard bankers sometimes do when companies go over their limits is place restrictions on capital spending, forcing money to be paid off the debt (Cash sweep), which would be a bad situation to be in as it could limit long term growth.
Other things Vocus could do to realise money from NZ would be to float it rather than trade sale, or just sell parts of it. There are also plans to sell Data Centers, which could get us out of trouble (hard to say how much its worth). They could sell a stake in ASC which could be a useful thing to do anyway if it was sold to a big OTT player rather than a competitor.
The CFO sounds very ontop of things and has mentioned he keeps the banks updated with progress, so i doubt there will be any surprises.
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