Retirement of debt

[Gfclappah]

Why is retirement of debt positive in cash flow, surely your paying your debt off so it’s cash out, or is it savings on interest? I’m confused because I’ve been looking at Babcock and their cashflow looks good but it’s mainly made up of retirement of debt

[Matt_C]

Was it bond issues where the price of the bonds below issuing price? That can cause a gain instead of a loss…

[Briscoe]

I might be wrong here but it’s

Issuance (retirement) of debt.

I believe this means issuance is + and (retirement) is -

I’m guessing Babcock took on debt this year?

That’s just me looking at it for less than 30secs.

I’ll check back again in a bit.

[Alien]

My understanding is, when debt is retired, the money in the sinking fund becomes available, which adds to the cash flow.

[Gfclappah]

I don’t get it.

If debt is retired then you’d need money to come out of somewhere. It just shows as a positive.

[Gfclappah]

Basically it’s a cumulative figure for debt.

. Looks like Babcock have taken on a big loan.

[Alien]

This is issuance - retirement net.

[Matt_C]

They issued new bonds set to mature in 2027

[Gfclappah]

Thanks all, makes sense