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18/03/19
13:35
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Originally posted by 8horse:
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The DADI acquisition is to be completed by end of this month. After the acquisition, my estimate of the available funding is around $235m, plus additional $60m cash from undertakings disposal of Banksmeadow facility as reported by AFR, total available funds would be around $295m. Should be enough to fund $75m buyback. -------------------------------- BIN currently has around $140m cash with no debt. EBITDA mid figure $94m + Patons Lane (online 1 July 2019) $20m + acquired DADI $60m = $174m (additional synergies savings of $15m could be realised) Available debt facilities: $500m. Plus exiting cash: $140m. Bingo Industries could fetch between $60 million and $70 million for its big Banksmeadow collections facility in Sydney(Source: AFR): say $60m Less: DADI acquisition $377.5m + $27m Remaining debt facilities: $295.5m Net debt: $204.5m Net debt / EBITDA: 1.18 Target leverage ratio range of 1.5x-2.0x net debt/EBITDA That means, net debt would be $261m - $348m Post acquisition, they still have $143.5m to spend to reach 2x net debt/EBITDA. The $143.5m is enough to cover $75m buyback. In the meanwhile, they will generate free cash from their $174m EBITDA.
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Would be nice if those out there panicking about the start of the buyback could just go back and read the announcement, "The buy-back is expected to commence on 15 March 2019". Free set of steak knives for those that can pinpoint the keyword here.