Debt to refinance was $550 million by 2010 when they reported last year. But since then they have cut and underwritten the dividend, and ruled out any capex.
In FY08 they generated $182 million in free cash flow, after debt servicing. Margins will be hit for sure, but they are pretty well hedged until mid-2009.
So free cash flow in FY09 and FY10 will go purely to debt reduction. By the time the refinance comes around, debt will be substantially lower than $550 million.
If banks will refinance Centro Retail, with PBGs free cash I'll back them to get a rollover (although likely at much higher rates).
PBG Price at posting:
30.3¢ Sentiment: LT Buy Disclosure: Held
