Post by
ouainouain on Oct 29, 2023 8:07am
Debt not impacted by interest rate fluctuations
To the fear mongerers and fearful of Chorus' debt situation:
"As of June 30, 2023, the majority of Chorus' debt is not subject to interest rate volatility as it bears interest at fixed rates or at floating rates that are fixed via interest rate swaps. Excluding revolving debt facilities, at June 30, 2023, 91.3% of Chorus’ term debt was fixed rate debt (inclusive of floating rate debt with swaps that effectively fix the rates thereunder) and 8.7% was floating rate debt."
So when near 100% of revenue is locked in under contract the company can run on auto pilot. All they need to do is find the best offers for asset sales, reduce leverage and finalize Fund 3.
Comment by
DrHoffman on Oct 29, 2023 9:02am
This post has been removed in accordance with Community Policy
Comment by
givemeabreak1 on Oct 30, 2023 1:30am
ouain I am not sure that is a good thing! There is a reason why you are doing fixed interest rate swaps. It often is because access to fixed rate loan are hard to come by so swaps save you money. It saves you money because just maybe they can only get fixed rate loans at inflated price. Maybe just me but that is a comment on risk profile....