Vocus (VOC) re-works debt profile
Vocus (VOC) +2.88%: tightened guidance today for the full year result, lowering the top end of the EBITDA guidance for a range of $359-369m. The market was already looking for $365m, around the mid-point of the revised guidance so not too much to change for the analysts there. The telco also reworked their debt, moving out their maturity profile with an average term of 3.5 years providing a little more balance sheet flexibility. They also managed to ease debt covenant restrictions to a maximum of 3.25x net debt to EBITDA. Currently running at around 2.8x, Vocus is clearly heavily leveraged but it looks to be making the right moves in terms of de-risking while maintaining earnings growth. The new set up shows confidence from the lenders, giving the telco the set up to take on the next phase of growth.
Vocus (VOC) Chart
