dps (interim) 2009-10, page-22

Hey 2ic
Thanks for your post.
I see DUE and ENV having similar gearing at about 80%. They also had cap raisings that were similar as well about a year ago or more.
re ENV:
I'm not sure of the details of what assets were securing the latest debt issue, and what pricing they acheived, or what contracts they may have had in place already that were making this debt offering secure (or not) - but certainly looks good with a 17 yr term. Would be interesting to know the finer details - could possibly easily be pieced together.
EVN has a suitor - APA - that has been gradually increasing their significant equity. APA is very strong financially, and this to some extent underwrites ENV's credit risk.

re DUE: They do not have an APA on their register. Turn it on its head as they have a fee factory running their show (Macquarie). Anything DUE does creates an opportunity to profit for the managers. A cap raise - debt or equity - is certainly a great opportunity for Mac and AMP. Look at how this went with GMG when they needed cash. (Not suggesting DUE is anywhere near as troubled as GMG was).

With the current debt suspicion of the major lenders - I'd rather be long with ENV then DUE - but have not analysed ENV really. Lets see what happens over the next month or so. I have no inside info, but the supply of DUE is quite strong at present. Somebody appears to be liquidating . . . hopefully not insiders who are privy to information.

All the best 2ic.

MM