RE: Remember this?11 Sep 2019 12:13
Yes, I thought of GKB, when I said Divs. ;-) Below are the RCF/SFA conditions for a permitted distribution. Clause D is the $500 mill clause and F is the one where the PIK also needs to repaid before distributions. That's another $132.5 mill. There's a minimum $212.5 mill to be repaid before ($80 mm RCF + $132.5 mm PIK), before divs can be considered. It's all down to Brent and FCF here..
A distribution is a “Permitted Distribution” when each of the following conditions are
satisfied:
(A) the Leverage Ratio has been no greater than 2.0:1.0 for the four immediately
preceding consecutive quarters;
(B) the Company is not in breach of the Leverage Ratio on the day of, and taking into
account, the distribution being made or paid;
(C) the Company has delivered a Liquidity Test taking into account the proposed
Capitalised Interest demonstrating, to the satisfaction of the Majority Lenders (as
defined below), that the Group has sufficient funds available to meet all liabilities
when due including all amounts on the SFA Final Maturity Date with a surplus to the
extent that debt service in each six month period is covered 1.20:1.00;
(D) Aggregate Commitments under the SFA are less than $500 million;
(E) no event of default is continuing under the SFA;
(F) on the date on which the distribution is made or paid, a principal amount of the High
Yield Notes and the Retail Notes has been redeemed in cash by the Company in an
amount equal to the all Capitalised Interest (and any further interest due and payable
howsoever described has been paid in full); and
(G) at least 10 business days before the date on which the distribution is made or paid, the
Company confirms to the SFA Lenders that all the above conditions are, or will be,
satisfied on the date on which the distribution is made or paid.
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