Western Wind Energy Corp V.WND

Debt v. Grant

[anott]

Did some quick calculations and WND has the following debt (rates in brackets)

$55M - due on grant payment

$15.5M corporate loans (20-25%)

$4.5M corporate loans (12%) maturing shortly

$15M deferred financing for Windstar

Total --> $90M of high interest or due upon payment loans

Addition loans:

$12M for solar panels for Yabucoa - to be paid on financial close of the project

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The grant was for ~$78M.  Taking the now due items, the grant comes down to $8M.  Assuming that is paid against the high interest debt (25%) we find WND has:

$7.5M corporate loans (20-25%)

$4.5M corporate loans (12%) maturing shortly

$12M for Yabucoa (to be replaced with project financing)

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So the question for Monday's call is, how are we going to pay the $4.5M that is coming due and the $7.5M that is at a VERY high rate without doing a raise at $1.20?

[bart_dc]

Anott  thank you for your quick calculations. However, you didn't take cashflow after interest payments into account as well as a more detailed deadline of debt. Below is a more detailed debt profile (if a number is missing, please let me know) derived form Q1 financials in same order (more or less) as mentioned in reporting 55M due on grant payment 15.5M due on grant payment 2.9M  

[CanackShack]

This post has been removed in accordance with Community Policy

[anott]

Bart Your comments completely reflect what managment has said about cash flow being able to cover the difference.  I hadn't taken the time to crunch cashflow numbers.  You are right though, it seems cash flow can cover the difference.  20% sucks for bridge financing, but it shows the potential of this company as a long.

[cutthebsbud]

so the tart further exposing hisself as a creeper and SIP: - just like misnumbers you fail to present the whole and pertinent truth, so creeper why don't you do this: a) id all the interest payments that WND will be making in 2012 (like +7% on the Windstar debt of +200M (when does that start to accrue)or the the 25% on various other debt)   b) then how bout including the other "

[phillyb]

Maybe with 80 mil and the likelihood of positive cash flow they will be able to roll some of this debt forward at better rates... :)>

[bart_dc]

You'll have to give more detail about your 9 Million before we can discuss whether you're right or wrong. Little bit too easy to shoot on my message like that.   B (for tart)

[bart_dc]

thank you for the polite reply. interest payments are taken into account when using the 3M Quarterly cashflow (AFTER interest). Ok, it's a rough calculation but hey, maybe you should provide more detailed numbers.   Ok, the commitments on page 15 could need some additional financing, so what. Whether they need 2.3 or 5.1M, both are doable (ok, maybe at a rate of 20%). debt service ratio

[cutthebsbud]

oh god way 2 funny,   so this SIP bartletart posts on this MB attacking a whole range of retail owners, who use this MB to express their good, bad and indifferent feelings towards their investment in WND (which is IMO all very normal)..   .. now this SIP letart, claims amongst various things to be experienced in windfarm financing (or some such nonsense) .. and then letart makes all