Voya Asia Pacific High Dividend Equity Income Fund T.IAE

Brokerage Comments Since the delay announced

[Naka2112]

RBC
"Debt Position Stable: Despite the delay on Stella we forecast peak net debt remains ~$850m (in-line with company guidance). This reflects a strong hedging position (6,300b/d at $102/bbl until mid 2016), relatively predictable 2015 capex and production guidance that assumed no contribution from Stella. The debt position is funded from $1bn debt facilities that include $300m five-year senior bonds, $610m RBL and $100m corporate facility. Redetermination of the RBL is scheduled through April 2015."
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Finncap

"Debt still covered. The capex on Stella is now largely spent and peak debt (US$850m) will be reached in Q2. Existing production is cash flow-positive and sufficient to meet the scheduled repayments, although repayments will now only accelerate in 2016 rather than in 2015. The hedge at US$102/bbl covering 6,300bbl/d of production is a crucial factor in these calculations"

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Cenkos
No Debt concerns: We do not believe that Ithaca will be materially impacted with regards to its current debt position. Given that the company is close to peak debt at c $830m and that the material cash flow from Stella has slipped, the only impact will be on the facility headroom and capacity for M&A activity. On the face of it this may look like an issue, but we believe that Ithaca will not require to renegotiate terms in the way that peers such as EnQuest and Afren have had to do of late.

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Cannacord

We concur with the company's confidence in the net debt outlook at $60/bbl, and at that oil price we would not expect the company to require drawdown of its $100m corporate facility. However, the full borrowing capacity of $1,010m assumes no reduction in RBL financing of $610m at future redeterminations.