Cordiant Digit. Share Price (CORD)

Https://www.proactiveinvestors.co.uk/companies/news/1061615/the-secret-to-cordiant-digital-s-successes-savvy-capital-allocation-1061615.html

Yet more bying by the founder, a helluva statement of confidence in the co.

From the latest report:

"At 31 March 2024, there were four debt facilities in the Company’s group, at Emitel, CRA, Speed Fibre and the fund-level Eurobond. The €200 million Eurobond is a term loan, with a bullet repayment in September 2026."

and

"CRA’s debt package is due for renewal in mid 2025. The investment Manager and CRA have begun work on refinancing these facilities well in advance of the term date."

So at least 2 of the 4 debts have relatively short maturities. However I note that the average cost of debt is given as 6.7%, which seems quite high, so hopefully rolling over the debt at maturity is not going to increase the interest rate by much.

In some ways I prefer to see a high rate of interest being paid, as it means the current earnings/AFFO are already based on a high interest cost, and they shouldn't be hit hard if the debt is rolled over at a similarly high rate.

Amended in latest report

"Gearing and interest

The Company had total liquidity equivalent to £167.7 million at 31 March 2024, comprising £62.8 million held directly at the Company, £46.8 million held at portfolio company level and undrawn facilities at portfolio company level equal to £59.1 million. In aggregate, the Company and its portfolio companies had gross debt equivalent to £694.7 million at 31 March 2024, and therefore net debt of £585.1 million. This resulted in gearing as at 31 March 2024 of 4.5x measured as net debt divided by LTM EBITDA (including Company-level costs) or 38.9% measured as net debt divided by gross asset value (GAV)."

There were also a couple of director purchases in the last few days. I assume they were not allowed to buy until after the results came out. They probably knew the results were going to be good, but they had to wait and then pay a higher price!

I'd be tempted to add some more if the price pulls back a bit.