What happened to BB ?, page-5

The DADI acquisition is to be completed by end of this month.
After the acquisition, my estimate of the available funding is around $235m, plus additional $60m cash from undertakings disposal of Banksmeadow facility as reported by AFR, total available funds would be around $295m. Should be enough to fund $75m buyback.

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BIN currently has around $140m cash with no debt.

EBITDA mid figure $94m + Patons Lane (online 1 July 2019) $20m + acquired DADI $60m = $174m (additional synergies savings of $15m could be realised)


Available debt facilities: $500m.
Plus exiting cash: $140m.
Bingo Industries could fetch between $60 million and $70 million for its big Banksmeadow collections facility in Sydney(Source: AFR): say $60m

Less: DADI acquisition $377.5m + $27m

Remaining debt facilities: $295.5m

Net debt: $204.5m

Net debt / EBITDA: 1.18

Target leverage ratio range of 1.5x-2.0x net debt/EBITDA
That means, net debt would be $261m - $348m
Post acquisition, they still have $143.5m to spend to reach 2x net debt/EBITDA.

The $143.5m is enough to cover $75m buyback.
In the meanwhile, they will generate free cash from their $174m EBITDA.