I don't think RCY's issue is about debt. RCY was floated if memory serves me right after the financial maelstrom had hit and about 5 months after Centro hit the fan. So, the debt was offered at a time when debt had become an issue. Correct me if I am wrong but the current debt doesn't need rolled over until 2014.
RCY is all about traffic numbers, at least for the next 18 months. They either get 70% or more of the forecast traffic and there is a business or all sorts of scenarios could eventuate, mostly unpleasant.
I think Clem 7 will struggle to get 100% of traffic initially, including the 18 month ramp up forceast (I live in Brisbane) but once the Bris Connections motorway is open I reckon they'd have a fair chance.
RCY Price at posting:
32.0¢ Sentiment: LT Buy Disclosure: Held
