Kitz Forum

Announcements => News Articles => Topic started by: renluop on January 12, 2017, 03:12:38 PM

Title: TalkTalk on the borrow
Post by: renluop on January 12, 2017, 03:12:38 PM

For  £300m. (http://www.ispreview.co.uk/index.php/2017/01/name-bond-broadband-isp-talktalk-looks-borrow-300m.html)

Title: Re: TalkTalk on the borrow
Post by: niemand on January 12, 2017, 06:53:41 PM

Indeed. Refinancing bank debt along with possibly some new projects.

Title: Re: TalkTalk on the borrow
Post by: Chrysalis on January 12, 2017, 06:57:40 PM

borrowing to pay dividends seems a crazy waste of money.

Title: Re: TalkTalk on the borrow
Post by: sevenlayermuddle on January 13, 2017, 12:29:36 AM

Quote from: Chrysalis on January 12, 2017, 06:57:40 PM

borrowing to pay dividends seems a crazy waste of money.

From my limited understanding, I thought dividends could only be paid from profits?

Title: Re: TalkTalk on the borrow
Post by: Chrysalis on January 13, 2017, 01:32:05 AM

they can be paid however the company wants. (I think) :p

Title: Re: TalkTalk on the borrow
Post by: c6em on January 13, 2017, 09:10:21 AM

Yes, they must be paid out of profits BUT that can be retained profit from previous financial years and not just the profits from the year that the divi's are paid out in.
The term dividend cover ratio relates to this in that how much of the current years profits are covered by the dividend payout actually made.