RE:Nordsee One_Gemini Results when2buy wrote: I've taken a quick look here...
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Company tightened EBIDTA guidance with top end capped to $900M. I remain concerned on Debt here ($7.142B) (it appears financing repayments are tredding water) and would like to see the company pay down some debt before I could take a future significant position here.....
From the Q3 report off shore wind long term debt accounts for $4.11B (Operations) + $0.62B (Construction) for a total of $4.73 B
From the 2017 Annual report (page 33), interest rates on this debt are
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On December 29, 2017, Nordsee One achieved term conversion and renegotiated its €0.8 billion of senior debt, to reduce the weighted average all-in interest rate to 2.2% for the remaining 12-year.
On August 18, 2017, Northland achieved financial close on its Deutsche Bucht project, having obtained a €988 million non-recourse construction and term loan and related loan facilities from a syndicate of international commercial lenders. The interest rate on the Deutsche Bucht debt has been effectively fixed, with a weighted average all-in swapped interest rate of 2.8% during the construction period and 2.7% during the term period. The debt matures in 2033.
In April 2017, concurrent with achieving final completion, Gemini renegotiated the project’s €2.0 billion senior debt on more favourable terms to reduce the weighted average all-in interest rate by 80 basis points to 3.8% for the remaining term and removed the cash sweep provision. The debt matures in 2030." It seems to me these are very favourable interest rates for relatively long terms. Why should they pay these down just to achieve a lower Debt/EBIDTA ratio?