Ann: Pacific Energy to Acquire Contract Power Group, page-11

@Andrix @Tinwins The $140m "new" facility I would say covers the $85m cash price, costs, plus the fact they had a debt facility at 30/12/17 of $56m of which the net debt was $39m ($43m loan less $4m cash).

The previous $56m debt facility would have been rolled into the "new" $140m facility. So assuming the $85m plus $43m actual debt are added together they will be using $128m of the $140m facility. Then they have a cash balance in the bank.

Few queries above about the $20m raising. With Ken Hall (50%) and other Directors happy to take up entitlements I am happy to see the company not waste our money underwriting the remaining $7 or $8m needed. Otherwise approx. $1m would have been lost to Bankers. A quick call to Perennial and Colonial and another $3m in the bank so the risk of this not getting up is v'low. I don't think they need the $20m - its just insurance and flexibility.

I think its a good buy, diversifies the group earnings further, they will achieve some cost savings at executive and operational levels and with ebitda much higher than interest cost and surplus generation assets and other equipment saving capex in the years to come I think the cash machine will have cranked up a gear or two. Giving away the 2.5c dividend for 1 year is a small sacrifice to get this deal done with minimal new equity issued. A very good use of the conservative Balance Sheet and I think meeting the 40% loan repayment over 3 years will be easily achieved from the $60m yr ebitda they could be making. Take off say $8m in interest and they still have $52m to spend on loan repayments, capex and future expansion/acquisitions.

Happy days. I will be buying mine and asking for more (if possible)