LGC prices, page-26

Based on the AGM comments, my impression was that there was no deadline for refinancing of the old debt facility. There is no real NEED for it, but it makes sense if the benefits of lower interest rates on new debt outweigh the break fees for getting out of the old debt. When that happens IFN will refinance. It could be tomorrow, it could be later this year. Eventually it will happen, but I don't care when for reasons that I'll explain below.

Of course, the cash sweep requirement on the old debt facility is a hassle in that no dividends can be paid. However, IFN management had structured a new separate debt facility that is outside of the cash sweep requirements of the old debt facility to allow funding for new project construction. So it's important to note that the cash sweep hassle doesn't stop progress.

The main thing to remember is that these are GOOD debt problems! IFN has plenty of free cash flow to service existing debt and is not distressed in any way whatsoever. It's just that everybody is waiting for a refinancing to free up cash for dividends. Personally, I don't mind if free cashflow is used to amortise existing debt quickly for a few more months. Whether it's to pay me dividends or de-leverage IFN, free cash flow adds to shareholder wealth and the important thing is that there is plenty of it with current electricity and LGC prices.