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Hello, I am looking at the Q1a where impact on forcast earnings per share is asked.
My question is about the loan payment. As stated,First, “loan notes of $175m nominal value are due to be redeemed in just over a years time”. I was wondering if the loan payment fact has been included in the forcast of profit (217).
Apparently the solution indicates that no as the interest saving was included in the impact. That is to say, in the forcast they are going to continue paying the interest in year 1?
I am really confused, please help.
Thank you in advance.The current forecast will have included the interest payable for the first year (because they are not due for repayment until just over a year).
As soon as they sell the division they will pay off the 9% loan notes. As a result, the revised forecast showing the implication of the sale will be adjusted for the interest saving.
I see. It actually means that the loan is due in Y2 or later. And the sale will help the corporate to advance the payment.
Thank you very much for the reply.
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