Post by
joebravo on Jun 23, 2023 11:22am
Favourable Terms for Refinancing
You don't see these kind of terms unless the business model is stable.
To get refinancing under 4% while interest rates in general are much higher, should give investors some comfort, and Sienna has been delivering on improved fundamentals.
Payout are under the AFFO and the company has suggested investors should expect this to continue, but the refinancing allows for flexibilty of a 120% payout above AFFO for over and above $100 million in financing up until Dec. 31, 2024 and 100% of AFFO thereafter. It's all good.
From May 10, 2023 on Sedar:
2. Amendments to the Credit Agreement (a) Section 1.1 of the Credit Agreement is amended by adding the following defined terms in the correct alphabetic order: ““AFFO Distribution Threshold Percentage” means (a) for the Financial Quarters ending March 31, 2023, June 30, 2023, September 30, 2023, December 31, 2023, March 31, 2024, June 30, 2024, September 30, 2024 and December 31, 2024, if the applicable Liquidity Amount (as of the date of any applicable Distribution) is: (i) greater then $100,000,000, 120%; and (ii) equal to or less than $100,000,000, 110%; and (b) for all subsequent Financial Quarters, 100%.” “
“Liquidity Amount” means on the date of any Distribution, the sum of (a) the amount of cash on deposit in all bank accounts maintained by the Borrower with the Lenders; and (b) an amount equal to the Total Commitments less the Advances Outstanding as at such time (in each case calculated on a pro forma basis after giving effort to such Distributions).”