Q: While interest rate predictions remain a big factor for most REIT, biggest concern for me when do big debt maturities are due for this Co. Can you please advise from that perspective whether NWH is able to defer it for longer terms or are they very vulnerable ?
5i Research Answer:
NWH has a fairly large maturity schedule next year, about $550M mid year but more than $1.5B by year end. The balance is more spread out, towards 2028. Considering the rate outlook, the refinancing is doable, but may certainly still be very challenging, considering the amount. This raises the possibility of another distribution cut. An increase-and-extend debt refinancing may be the best option for the company, to convince debt holders to extend maturity with a bribe of higher interest rates, rather than squeezing the company with a large maturity at a difficult time.