All fired up Nov 7, 2009
Our cash cover and interest cover is very good. But I dont want to sacrifice market share. (The Star Online, Malaysia -- Business)
Strong Saudi prospects put some energy into Syrah's and Citadel's share prices. Oct 12, 2009
The exposed rocks of interest cover about one-third of the area. Then in September, Syrah announced that it had been granted a reconnaissance licence which is essentially a foot in the door as it allows access to the mountains of exploration data generated by government-funded exploration work back in the 1970s and 1980s. (Sydney Morning Herald -- Business)
Take a closer look at Elders Sep 5, 2009
3 billion with interest cover of less than two times. At its recent lows Elders' equity has been valued at less than $200 million. (Sydney Morning Herald -- Business)
PaperlinX slumps to a loss on writedowns Aug 31, 2009
Its lenders have agreed to set covenants for the year to June 2010 based on the company meeting earnings targets, then revert to a normal combination of limits based on interest cover, leverage ratio and total debt to total capitalisation ratio through to February 2011. As foreshadowed, PaperlinX reported a net loss of $70. (Sydney Morning Herald -- Business)
CIG Media SPAC pitches offer to buy out Incisive LBO lenders at discount; bows out abruptly Aug 15, 2009
Incisive Media breached leverage and interest cover covenants at the end of December. The sponsor submitted an informal restructuring plan that was rejected out of hand by lenders. (FT.com -- Markets)
UltraTech net up 58% on volume growth Jul 22, 2009
59 and an interest cover of more than 10 times. UltraTech Cement will invest Rs 2,050 crore over the next three years, which will be funded through internal accruals. (India Times)
CRH to focus on cashflow and cost-cutting to meet EUR 900m maturities Jul 11, 2009
5x and interest cover of 4 ... Lee said the rolling 12-month EBITDA/net interest cover was expected to remain at 6. (FT.com -- Markets)
Weiss slams CSR board Jul 9, 2009
Guinness Peat director Gary Weiss has launched a blistering attack on the board of CSR at the annual meeting this morning, saying the company's poor performance was a "sorry state of affairs'' and that potentially earnings-boosting strategies put to it by Guinness Peat were not properly explored. Dr Weiss read a series of financial statistics in his opening speech from the floor which showed that on earnings, dividends, interest cover and debt the company had severely underperformed over the... (Sydney Morning Herald -- Business)
Elizabeth Knight Jul 5, 2009
Foster's is one of our few large corporates with the most valuable commodity in today's market - a strong balance sheet with very strong interest cover, an enviable debt repayment schedule and strong cash flows. Friday February 13, 2009. (Sydney Morning Herald -- Opinion)
Air NZ-Virgin Blue merger touted to tackle big kangaroo Jun 25, 2009
"The interest cover is tight and the gearing is still pretty high," an analyst said yesterday. "It's gone a long way [to resolve concerns about debt] but it's still an issue.". (Sydney Morning Herald -- Business)
Mirvac bags $1b ahead of shake-up Jun 5, 2009
Mirvac's capital raising has helped restore its crucial interest cover ratio back to above three times from the previous 2. 25 times. (Sydney Morning Herald -- Business)
Do you have the tools to trade? Jun 1, 2009
You need to find those stocks that have got good credentials, low debt, low interest cover, sound prospects and that are not likely to go broke. The only way a lot of people can find out all this is to get access to people who have that information. (Sydney Morning Herald -- Business)
Upbeat Tower posts 12% first-half net profit fall May 28, 2009
Tower, the largest independent life insurer in Australia, said its debt and gearing levels remained low and its interest cover was at 12 times earnings. Mr Minto said Tower's exposure to investment market volatility was limited but poor investment markets had affected the company's profit results. (Sydney Morning Herald -- Business)
Tata Steel gives banks more time for loan recast May 28, 2009
Banking covenants are typically agreeme 00004000 nts between a company and its creditors, which stipulate that the company should operate within certain limits, such as levels of interest cover, working capital and debt service cover. This is done to maintain a certain level of gearing or the ratio between the companys debt and its equity capital. (India Times)
Hot summer drives Coca-Cola forecasts higher May 22, 2009
9 billion at the end of the first half, equivalent to EBIT interest cover of 4. 3 to 4. (Sydney Morning Herald -- Business)
APN faces an uncertain future May 20, 2009
APN's banking covenants, which include interest cover and the ratio of debt to earnings, will improve and should keep the lenders at bay. It has the longer-term structural issues of all newspaper companies around the world - but more on that later. (Sydney Morning Herald -- Business)
Tata Steel UK plans to pre-pay 200m debt May 13, 2009
Interestingly, for Tata Steel UK, its principal lenders have agreed to support the revised package, which mainly relate to the company maintaining the debt-to-operating earnings ratio and interest cover. The Tata Steel management, during the last analysts conference, had said that UK arm would repay $450 million of debt in FY10. (India Times, India -- Intl Business)
Goodman to strip back non-core assets May 6, 2009
1 billion debt translates into gearing of 31% and interest cover of more than four times. Mr Margin said he had no doubts there would be buyers in the market, despite the poor economic conditions. (Sydney Morning Herald -- Business)
Orica reaffirms guidance, stocks soar May 4, 2009
Interest cover was 6. 6 times, well below the company's covernance of two times, and gearing was 30%, well below the company's preferred range of 35 to 45. (Sydney Morning Herald -- Business)
BlueScope May Sell $707 Million of Shares to Cut Debt, Deutsche Bank Says Apr 29, 2009
The companys interest cover of 3 ... The interest coverage ratio is a companys pretax operating income or cash flow divided by its interest obligations for a given period. (Bloomberg -- Australia & New Zealand)
Debt is always on their mind Apr 20, 2009
And word is new covenants have now been settled on, requiring a minimum senior interest cover ratio of 1. 59 times at the end of the June quarter and 1. (Sydney Morning Herald -- Business)
Refinancing readies Australand for takeover Apr 16, 2009
Australand said it had also agreed on new lending rules for its $950 million ''multi-option'' facility, including a reduction in the interest cover ratio from 2. 5 times to 2 times and a cut to the gearing covenant from 60% to 55. (Sydney Morning Herald -- Business)
Analysts concerned by Ten's debt Apr 3, 2009
"However as previously flagged, we believe the key risk is in fiscal 2010, where Ten could potentially breach covenants in light of our net debt/EBITDA forecast of 6.0 times (covenant is 4.25 times) and interest cover of 2.4 times (2.5 times covenant).". Ten's majority owner, Canwest, continues to face its own debt serviceability issues, raising the possibility that it will sell down its 56 per cent stake in Ten. (Sydney Morning Herald -- Business)
Funding discipline is the key when credit is tight Mar 24, 2009
Required ratios of debt to equity and interest cover have become tighter, while loan covenants and reporting requirements have become more onerous. In these volatile times, CFOs need to focus on their short-term funding requirements while positioning their organisations for a long-term financing strategy that can adapt to changing financial market conditions and enable their organisations to take advantage of the eventual upswing. (Business Report, South Africa)
Ideal Standard sponsor Bain hires financial adviser as 2007 LBO falters Mar 21, 2009
The LBO financing carries leverage and interest cover covenants, with five EBITDA cures permitted during the life of the deal but no more than twice a year, said the second and a fourth source. In addition, there is a mulligan, and the documentation in theory could allow a Mauser-style debt buyback, noted the fourth source. (FT.com -- Markets)
Inchcape makes rights issue Mar 19, 2009
The rights issue would provide the group with increased headroom to its debt covenant regarding adjusted interest cover contained in its existing borrowing facilities and delay its refinancing requirement to the end of 2012. "We believe that raising new equity is the right action to take and is in the interests of our shareholders as it will allow us to reduce our debt and improve our financial headroom," said Lacroix. (International Herald Tribune -- Technology)
B&B Japan Property Trust Mar 4, 2009
BJT has an interest cover ratio of nearly four times and a property portfolio valued at more than $1 billion above existing debt levels. Derivative contracts are in place that protect the capital position and distribution payments from adverse currency movements. (The Age, Australia)
Firms in for tougher reporting season Mar 2, 2009
Using a range of financial liquidity tests such as interest cover, cash conversion cycle, and z-score, we conclude that the balance sheets of most Malaysian companies will remain financially steady through 2009. Similarly, our stress tests indicate that the banking system would not require recapitalisation unless non-performing loans quadruple from todays level, which is highly unlikely. (The Star Online, Malaysia -- Business)
BBP heading for debt breach Feb 28, 2009
"It is a complex calculation. Nevertheless, the current earnings pressure that we're under does mean that there's obviously going to be some enormous pressure on our ICR [interest cover ratios] in the near future," he said. Scant attention was paid to BBP reporting a 80 per cent fall in first-half profit to $17. (Sydney Morning Herald -- Business)
Gitanjali: Trading 1/5th of book-value Feb 23, 2009
The gross block grew at a CAGR of 45% in the last four years that could explain the decline in interest cover ratio to 2. 7 in the December quarter. (India Times)
Switch off spells bad news Feb 20, 2009
Even the most pessimistic broker forecasts for this year suggest the company has interest cover of about three times - which is reasonably comfortable. But if the rate of decline in the advertising market continues at the pace of the past six months, this level of interest cover could become slim. (Sydney Morning Herald -- Business)
AMP profit wilts in financial turbulence Feb 19, 2009
Group gearing remains at 14%, while underlying interest cover was 10. 9 times, AMP said. (Sydney Morning Herald -- Business)
Another lap round the cellars Feb 18, 2009
Foster's is one of our few large corporates with the most valuable commodity in today's market - a strong balance sheet with very strong interest cover, an enviable debt repayment schedule and strong cash flows. It is one of those rare companies that should be able to capitalise on the world economic crisis and pick up distressed assets at the bottom of market. (Sydney Morning Herald -- Business)
AMP to slash dividend as profits tumble Feb 14, 2009
" However, Mr Dunn also reassured the market of the company's solid financial position, with excess capital remaining above minimum regulatory requirements. "AMP remains a financially strong company, with a robust balance sheet, low gearing and high interest cover," he said. "Our Contemporary Wealth Management business generated more than $2 billion in net cash flows in 2008, which is a strong result in a difficult market. "These positive flows have seen our market share continue to grow over... (The Australian)
Challenger to shed assets after $59m first-half loss Feb 11, 2009
3% to December 31, 2008, leaving headroom of $82 million given an interest cover ratio of 2. 6 times. (Sydney Morning Herald -- Business)
Blue Star,Voltas feel slowdown heat Feb 8, 2009
The interest cover ratio has, on the other hand, has declined in the last three quarters, from 33. 2 in March 2008 to 10 in December 2008. (India Times)
