RE:RE:RE:RE:Debt in GBP/USD
GB revenue to pay off GB debt until.pound recovers. Same Q4 conference call Liartice: David Common, JPMorgan - Analyst [38] -------------------------------------------------------------------------------- Great, thank you. Could I ask -- maybe this is a question for John. Just things that you would be thinking about or we're supposed to think about just with all these headlines on Brexit. Then secondarily, I certainly get the priority on deleveraging, including just through EBITDA growth. But maybe you could help us what to expect with use of free cash flow during the year, to what extent that might go to debt reduction and to what extent that might go to acquisitions and, I guess, the earnout. Thank you. -------------------------------------------------------------------------------- John Beighton, Amdipharm Mercury Limited - President [39] -------------------------------------------------------------------------------- Yes, I think that's probably one for -- -------------------------------------------------------------------------------- Mark Thompson, Concordia Healthcare Corp. - Chairman, CEO [40] -------------------------------------------------------------------------------- Well, do you want to comment on Brexit? -------------------------------------------------------------------------------- John Beighton, Amdipharm Mercury Limited - President [41] -------------------------------------------------------------------------------- I won't tell you which way I'm voting. -------------------------------------------------------------------------------- Mark Thompson, Concordia Healthcare Corp. - Chairman, CEO [42] -------------------------------------------------------------------------------- I don't think we're going to make comments on Brexit or the US election, quite honestly. -------------------------------------------------------------------------------- Adrian de Saldanha, Concordia Healthcare Corp. - CFO [43] -------------------------------------------------------------------------------- I will take that question. For 2016, and I've said this before, we essentially have a natural hedge. Because even though you may, if the pound continues to stay at a lower rate relative to the US dollar, when you convert our GBP results to dollars you see a decline impact there. But you have to think about it: What do we need from a GBP perspective? The AMCo business continues to perform very strongly, and we will use that cash flow to service the obligations we have in GBP, particularly in 2016. As you know we have the $144 million AMCo earnout to the sellers of the AMCo business; we also have additional earnouts for some of the acquisitions that were made by AMCo prior to our acquisition; and we have to service the debt. So what you find is while the translated results may reflect a decline, if you go back to the underlying GBP business that cash flow is there and that will be used to service the GBP obligations, including also the GBP debt that we have. Because those obligations in translation to US dollars will be less; okay?