TSX:NWH.DB.G - Post by User
Post by
DanielDarden123on May 18, 2020 2:56pm
255 Views
Post# 31042911
Working Capital-Q1
Working Capital-Q1 The REIT’s current liabilities totaled $474.0 million, exceeding current assets of $133.1 million, resulting in a working capital deficiency of $340.8 million as at March 31, 2020.
Current liabilities include:
• Vital Trust term debt with an outstanding balance of $78.3 million at a weighted average rate of 3.81%, maturing March 31, 2021. The REIT currently expects these term debt facilities will be refinanced on or before maturity.
•Canadiandollardenominatednon-revolvingunsecuredfacilitywithabalanceof$54.0million,maturing January 2021. The REIT currently expects to either repay or refinance the facility on or before its maturity.
• $154.9 million of Canadian mortgage maturities. Subsequent to the period, the REIT completed refinancing on $115.4 million of the maturing Canadian mortgages. The REIT expects to refinance the remainder in normal course as they mature. (From M,D&A, Pg.59)
My take: With $360M to be dealt with in the next year, it will be interesting to watch the progress. In normal times this would not be a concern, but suddenly debt covenants are in the forefront and will cause problems for many companies.