- May 8, 2011
- 3,904
- 5,823
Just to add on the refinance, this introduces another layer of stakeholder.
Under the facility agreement (loan document), the club will have a suite of conditions including ratios. A key one is the DSCR (debt service cover ratio) and this will require EBITDA to be a certain level above debt service and repayments - typically 1.3 at a guess.
So the club needs to remain healthy financially, but I would suggest we are nowhere near over leveraged. But it does mean we have to live within our (much greater) needs and can’t do a city (unless shareholders introduced funds).
Under the facility agreement (loan document), the club will have a suite of conditions including ratios. A key one is the DSCR (debt service cover ratio) and this will require EBITDA to be a certain level above debt service and repayments - typically 1.3 at a guess.
So the club needs to remain healthy financially, but I would suggest we are nowhere near over leveraged. But it does mean we have to live within our (much greater) needs and can’t do a city (unless shareholders introduced funds).