Tuesday 22 March 2016 by FIIG Research Company updates

Company updates – Royal Women’s Hospital and Virgin Australia

Our analyst provides a recap on Royal Women’s Hospital refinancing risk and an update on Virgin, as major shareholders inject additional funding to support a review of its capital structure

A recap on Royal Women's Hospital refinancing risk

Published 21 March 2016

The Royal Women’s Hospital (RWH) bond documents refer to the 2017 date as a ‘scheduled maturity date’ not a ‘call date’. This is very different to the optional redemption/call provisions we see on a number of other bonds. The regular call provisions provide an opportunity for an issuer to redeem the bond early but there are no adverse consequences for the issuer if the early call isn’t invoked. However, if RWH does not repay its bonds on the scheduled date there would be far greater consequences, which are outlined in the full article.

Virgin’s major shareholders inject AUD425m additional funding

Published 22 March 2016

Virgin has announced it is commencing a review of its capital structure. The review will include an assessment of the appropriate mix of debt and equity and operational initiatives to enhance cashflow and profitability. As part of its announcement, Virgin has secured AUD425m in additional funding from its four major shareholders in the form of a subordinated loan. The loan ranks below Virgin’s existing debt to provide additional flexibility in the short term, see the full article for further details.