BLA 0.00% 18.5¢ blue sky alternative investments limited

Ann: Blue Sky H1 FY19 Results Update, page-74

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  1. 396 Posts.
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    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.




 
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