The post you are reporting:
Really you have not got a clue have you
simple maths should suffice to show that the proposed structured bond debt for the purchase of the port is perfectly reasonable and totally serviceable
Lets assume for a moment that the port clears a profit of £15m pa
Lets assume that the purchaser is better at running the port than the current management and manages to grow that profit by 3%pa
Let us also assume that the proposed commercial bond issue by the purchaser is split into 6 equal tranches repayable at 5,10,15, 20, 25 & 30 years with corresponding coupon rates of 1.5%, 2%, 2.5%, 3%, 3.5% & 4%
So what this then gives you is the following
a) total bond issue £400m
b) total profit over 30 years £714m
c) total debt repayable based on coupon rates shown £622m (£71.7m @5yrs, £80m @10yrs, £91.7m @15yrs. £106.7m@ 20yrs, £125m @25yrs & £146.7 @30yrs)
d) net profit over the period £91m after debt servicing
As the meerkats say "SIMPLES"
For clarity this is addressed to Alexander - unfortunately in the 10 minutes it took me to do the maths and type it up numerous other posters had added to the thread
