--
My additional debt capacity / adjustment may seem conservative, but reflects the cashflow shortfalls I've highlighted, and also existing debt & interest expense.
The financial impact of this acquisition is negligible as it can be financed from cash on hand — in fact, TOT's
additional debt capacity warrants a positive debt adjustment.
We'll also adjust for cash — and noting finance expense is currently less than 7 % of Op FCF, we'll adjust for $ 0.2 billion of
additional debt capacity (thereby bumping finance expense to a still reasonable 15 % of Op FCF).
Plus we can expect interest paid to be significantly lower in FY - 2016: I estimate $ 1.9 million, vs. a prior $ 2.8 million — which would imply
an additional debt capacity of $ 137 million (at a 5 % rate), for say a new - build (just announced!)
Not exact matches
China's public - sector investment, in other words, is value destroying, and because it is funded by
debt,
additional investment causes China's real
debt servicing costs to rise faster than its real
debt servicing
capacity.
On that basis, quantitative easing frees up «
capacity» for the issuance of
additional market
debt.
A higher GDP offers a country
additional Eurozone
debt capacity, while a GDP decline places some restriction on future issuance.
The combination of the VantageScore 3.0 score and
additional data, the researchers found, provided enough evidence to assign creditworthy status to the conventionally unscoreable, on par with the conventionally scoreable — in fact, the average income of the unscorable was found to be 67 percent of that of the scoreable, and the unscorable showed «a reasonable
capacity for repaying
debt in terms of income and income generation,» the researchers state.