Maybe, but irrespective the covenants on the loan as disclosed are:
Financial covenants: The following financial covenants (for the Blue Sky group and not its underlying funds) tested quarterly: •minimum cash balance; •minimum recurring Cash EBITDA; •minimum net tangible assets; and •maximum annual capex.
And: The facility includes the following ‘Review Events’: •the CEO or independent Chairman of the Company is removed from office and not replaced with a person of appropriate qualifications and approved by the loan note holders within 120 days; •termination of a ‘Material Contract’ (i.e. a contract that contributes 5% or more of revenue) and it is not replaced within 60 days and the Company does not provide a certificate stating that based on fair and reasonable projections, it is of the good faith opinion that the financial covenants will be complied with for the next 12 months; and •a demand being made under a guarantee granted by the Company or a Guarantor (but not the underlying funds) in respect of the financing arrangements of certain investments, over a certain threshold.
So based on their disclosure, if any of the above issues needs to be addressed with Oaktree, there must be a problem somewhere.
BLA Price at posting:
63.5¢ Sentiment: Hold Disclosure: Not Held