Why Atlassian is more profitable than it looks

Original article by Yolanda Redrup
The Australian Financial Review – Page: 20 : 31-Jan-20

Workplace collaboration software company Atlassian’s net income is not a true reflection of its profitability. This is due to its use of a debt instrument known as ‘exchangeable senior notes’, and which does not exist in Australia. Investors wanting to get a better idea of Atlassian’s actual profitability are urged to compare its operating income or free cash flow year-to-year. Company co-founder Mike Cannon-Brookes has previously observed that Australian investors tend to overvalue profits and undervalue growth.

CORPORATES
ATLASSIAN CORPORATION PLC

Foxtel cuts jobs, locks in finance after restructure

Original article by Max Mason
The Australian Financial Review – Page: 22 : 6-Dec-19

Foxtel has confirmed that it has cut about 30 jobs following a recent restructuring which resulted in the amalgamation of three of the pay-TV group’s creative teams. The job losses comprises about 20 employees and 10 contractors, including some positions that are currently vacant. Foxtel recently completed a deal to finance its debt, with major shareholder News Corp providing it with loans that mature in 2027.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, NEWS CORPORATION – ASX NWS, KAYO SPORTS

Foxtel fortified by $1.6bn debt deal

Original article by Leo Shanahan
The Australian – Page: 24 : 25-Nov-19

Pay-TV group Foxtel has completed a deal to refinance some $US1.1bn ($1.6bn) worth of debt. It is said to include a $US900m debt facility with a syndicate of commercial banks. The deal comes as Foxtel seeks to increase its presence in the subscription video-on-demand market with the launch of a drama-focused streaming service in 2020. It will complement Kayo Sports, which now boasts some 443,000 subscribers and recently won the SportsPro OTT Award for the best user experience.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, KAYO SPORTS, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, HANA FINANCIAL GROUP INCORPORATED, DISNEY+, NETFLIX INCORPORATED, AMAZON PRIME VIDEO

News mulls its options in big Fox refinance

Original article by Max Mason, Tony Boyd
The Australian Financial Review – Page: 30 : 29-Apr-19

Asian investors are said to have expressed interest in a potential $2.5bn refinancing deal for pay-TV group Foxtel. Major shareholder News Corp is believed to be considering a range of options for the refinancing, rather than raising the entire amount via debt. These options are said to include an equity injection of up to $500m or a direct loan from News Corp. Foxtel is facing growing competition from subscription video-on-demand services such as Stan and Netflix; it could also potentially lose customers to its own Kayo Sports streaming service.

CORPORATES
FOXTEL MANAGEMENT PTY LTD, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, TELSTRA CORPORATION LIMITED – ASX TLS, STAN ENTERTAINMENT PTY LTD, NETFLIX INCORPORATED, KAYO SPORTS, FOX SPORTS AUSTRALIA PTY LTD

Yancoal moves on Hunter mines

Original article by Eric Johnston
The Australian – Page: 15 : 7-Jan-19

A group of Chinese lenders assumed ownership of the Ashton, Austar and Donaldson coal mines in the Hunter Valley in February 2016, after Yancoal Australia secured a debt funding deal. Yancoal remained operator of the mines, and its Chinese parent Yankuang Group has advised that one of the bond holders has exercised a put option to sell its bonds to Yankuang. Yancoal has indicated that the move is unlikely to have any significant implications for it.

CORPORATES
YANCOAL AUSTRALIA LIMITED – ASX YAL, YANKUANG CORPORATION GROUP LIMITED, BANK OF CHINA GROUP, INDUSTRIAL BANK COMPANY LIMITED, BOHAI HARVEST RST (SHANHAI) EQUITY INVESTMENT MANAGEMENT COMPANY LIMITED

Atlas looks to build buffer before returning to debt markets

Original article by Paul Garvey
The Australian – Page: 19 : 24-Jul-17

Atlas Iron MD Cliff Lawrenson says the iron ore miner will not repay its outstanding Term Loan B debt of $A103m until it has a working capital buffer of around $A50m. He adds that a revolving credit facility is among the options being considered to provide the company with more balance sheet flexibility. Lawrenson believes that capital markets will rate Atlas Iron more highly once its Term Loan B debt has been paid off.

CORPORATES
ATLAS IRON LIMITED – ASX AGO

Ten board mulls putting network into administrator’s hands

Original article by Max Mason
The Australian Financial Review – Page: 1 & 18 : 14-Jun-17

Ten Network’s shares went into a trading halt on 13 June 2017, pending a board meeting to discuss the free-to-air broadcaster’s future after three key shareholders elected not to guarantee a new loan facility. KordaMentha is expected to be appointed as administrator following the decision by Lachlan Murdoch, Bruce Gordon and James Packer, who had guaranteed the current $A200m loan facility that expires in late 2017. Murdoch and Gordon have been touted as potential bidders for Ten if cross-media ownership laws are relaxed.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, KORDA MENTHA AND COLLEAGUES PTY LTD, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, MOELIS AND COMPANY, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, NEWS CORP AUSTRALIA PTY LTD, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, WIN CORPORATION PTY LTD

Keeping Ten afloat relies on new deals

Original article by Max Mason
The Australian Financial Review – Page: 11 & 16 : 13-Jun-17

Moelis & Company is said to be confident of securing a new $A250m financing deal for Ten Network after Bruce Gordon, James Packer and Lachlan Murdoch chose not to back it. They had guaranteed the network’s existing $A200m loan facility, which expires in late 2017. Murdoch and Gordon are seen as potential buyers of Ten if it goes into receivership, although they would require changes to cross-media ownership laws. Meanwhile, Ten is seeking to reduce costs by renegotiating US content deals with CBS and 21st Century Fox, which are worth about $A150m a year.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, MOELIS AND COMPANY, COMMONWEALTH BANK OF AUSTRALIA – ASX CBA, NEWS CORPORATION – ASX NWS, FOXTEL MANAGEMENT PTY LTD, TELSTRA CORPORATION LIMITED – ASX TLS, STAN ENTERTAINMENT PTY LTD, NINE ENTERTAINMENT COMPANY HOLDINGS LIMITED – ASX NEC, FAIRFAX MEDIA LIMITED – ASX FXJ, NETFLIX INCORPORATED, UBS HOLDINGS PTY LTD, WIN CORPORATION PTY LTD, LAZARD ASSET MANAGEMENT PACIFIC COMPANY

Fortescue refinances to fortify its books

Original article by Paul Garvey
The Australian – Page: 42 : 10-May-17

Fortescue Metals Group has raised $US1bn ($1.36bn) via the issuance of five- and seven-year bonds. It was the pure-play iron ore miner’s first foray into the bond market for more than two years, and the proceeds will be used to repay some $A976m worth of debt that is due in 2019. Fortescue’s remaining debt will not have to be repaid until at least 2022. Its total debt has fallen below $US4bn, compared with a peak of $US10.7bn.

CORPORATES
FORTESCUE METALS GROUP LIMITED – ASX FMG, ARGONAUT SECURITIES PTY LTD, CREDIT SUISSE (AUSTRALIA) LIMITED, DEUTSCHE BANK AG, JP MORGAN AUSTRALIA LIMITED, MORGAN STANLEY AUSTRALIA LIMITED

Murdoch holds the key to re-shaping television

Original article by Aaron Patrick, Max Mason
The Australian Financial Review – Page: 36 & 37 : 1-May-17

Ten Network’s market capitalisation has slumped to just $A99.7m in the wake of a recent profit warning. The 7.7 per cent stake held by News Corporation’s co-chairman Lachlan Murdoch is now worth just $A7.7m, and there is speculation that News Corp ultimately wants to acquire the struggling TV network. Ten is seeking to renegotiate or terminate its content deals with CBS and 21st Century Fox, amid declining viewership of US TV shows in Australia. Ten also faces a deadline to repay or roll over a loan facility that has been guaranteed by Murdoch, James Packer and Bruce Gordon.

CORPORATES
TEN NETWORK HOLDINGS LIMITED – ASX TEN, NEWS CORPORATION – ASX NWS, NEWS CORP AUSTRALIA PTY LTD, FOXTEL MANAGEMENT PTY LTD, NOVA ENTERTAINMENT PTY LTD, CBS CORPORATION, 21ST CENTURY FOX INCORPORATED, CITIGROUP PTY LTD, WIN CORPORATION PTY LTD, NETFLIX INCORPORATED, STAN ENTERTAINMENT PTY LTD, YOUTUBE INCORPORATED, INSTAGRAM LLC, DISCOVERY COMMUNICATIONS INCORPORATED, REA GROUP LIMITED – ASX REA, AUSTRALIAN COMPETITION AND CONSUMER COMMISSION, CCZ STATTON EQUITIES PTY LTD, ITV NETWORK LIMITED, McKINSEY AND COMPANY, PROSIEBENSAT.1 MEDIA AG