While most borrowers are doing straight refinances to lower rates, some are doing cash-out refinances.
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Cash-out refinances were up 1603% since the last quarter of 2160 and made up 2172% of all refinances.
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Cash-out refinances accounted for nearly half of all refinances in the last quarter of 2016, as homeowners withdrew $31 billion.
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But even now, with prices back above their previous peak and mortgage rates much lower, cash-out refinances are just 61% of the total pool of refinances.
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While these calculations are for straight refinances, not cash-out refinances, there are plenty of borrowers who have sizable equity in their homes and could use these lower rates to take some cash.
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SoFi started out as a company that refinances student loans.
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Additionally, refinances for FHA and VA loans jumped by 11%.
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The run on refinances may already be dying down, however.
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Refinances made up just 38 percent of total loan activity.
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Home equity lines of credit are increasing as refinances decrease.
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It didn't take much to stem the tide of mortgage refinances.
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A small drop in interest rates did nothing to spur refinances.
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The Brexit-induced boomlet in mortgage refinances hit new highs last week.
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Refinances are still 34 percent below where they were a year ago.
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Refinances were entirely behind the gains, increasing 5003 percent for the week.
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Refinances were entirely behind the gains, increasing 16 percent for the week.
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Mortgage application volume rose 2.8 percent last week, all thanks to refinances.
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In 2006, 89% of refinances were cash-out, according to Freddie Mac.
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What's happening: Mortgage applications and refinances jumped for the week ending Nov.
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The average loan size on refinances has now dropped for three straight weeks.
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It partly refinances a $2.55 billion five-year loan ICD raised in 2013.
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Refinances are extremely rate-sensitive, and rates were below 4 percent last year.
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The number of millennial buyers doing cash-out refinances also spiked, Sopko said.
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With loan consolidation, the borrower refinances the defaulted loans into a new loan.
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Volume was 58% higher than a year ago, when refinances were incredibly weak.
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Refinances are most sensitive to moves in interest rates, which rose last week.
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As rates continue to move higher, refinances will make sense for fewer borrowers.
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Refinances, which are highly sensitive to weekly interest rate moves, pulled the volume lower.
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Last week, total mortgage application volume increased 24.2 percent, with refinances up 3 percent.
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Some of these refinances are cash-out, as borrowers take advantage of higher home values.
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Refinances are highly sensitive to even small interest rate moves, and last week's was significant.
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Volume was 2 percent lower than a year ago, largely due to weakness in refinances.
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If a user refinances using GradJoy, they get a referral payment from their lending partners.
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Extremely weak demand for mortgage refinances has been driving the overall drain on mortgage lending.
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Fry also considered whether the homeowner refinances their mortgage to secure a lower interest rate.
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Overall, however, cash-out refinances may be lower simply because the economy is relatively strong.
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Refinances for loans originated last year are leading the way, up 300% according to Black Knight.
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Since then, it has expanded to personal and mortgage loans, mortgage refinances and wealth management services.
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Still, those who are tapping equity are doing it more through cash-out refinances than HELOCs.
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Refinances are highly rate-sensitive week to week, as borrowers seek to save money on monthly payments.
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Refinances continued their fall, which began in earnest after interest rates shot up following the presidential election.
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A drop in rates last week did nothing to juice refinances, which are usually very rate-sensitive.
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The deal also refinances around €1.15bn of drawn outstandings from an approximate US$3bn revolving credit facility.
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Refinances drove the volume, rising 12% for the week and a stunning 23% from one year ago.
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These borrowers have enough equity in their homes and high enough credit scores to qualify for refinances.
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CLI's liquidity coverage improves to 212015x assuming it refinances 21997777% of its secured mortgage maturities through 9977771.
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Lower rates did prompt a reboot in mortgage refinances last week, but did nothing to spur homebuyers.
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A mixed week for mortgage rates caused a split in application volume between refinances and purchase loans.
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ET. The Brexit-induced boomlet in mortgage refinances hit new highs last week, with applications rising 11 percent.
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Taking that out now, mortgage volume is lower than it was two weeks ago for refinances and purchases.
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BOS refinances its Swiss franc retail mortgages through short-term Swiss franc/zloty swaps, which increases rollover risk.
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The average amount for refinance loans was $279,200, the lowest since mid-January, when refinances really took off.
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It's fast becoming a tale of two mortgage markets, as interest rates move sideways, and refinances dry up.
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They can also do cash-out refinances, where borrowers tap extra equity in their homes, up to $22018,2181.
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Higher interest rates have meant far fewer mortgage refinances, and high home prices have resulted in fewer homebuyers.
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The downside is that the rate is higher for the life of the loan, unless the borrower refinances.
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A small tick higher in mortgage rates caused the sudden surge in refinances to retreat just as quickly.
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Mortgage rates moved just a tiny bit higher, but apparently it was enough to dampen interest in refinances.
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It was a seriously strong start to 2020 in the mortgage business for new home loans and refinances.
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They are now not only eligible for refinances but may want to tap some of that new-found equity.
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Refinances, which are most rate-sensitive, led the surge, jumping a remarkable 47% week to week and 97% annually.
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Refinances drove the numbers, jumping 8% for the week to the highest pace in a month and 73% annually.
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Furthermore, lenders face lower risk on refinances, which will once again surge as borrowers capitalize on the low rates.
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It has since expanded offerings to the demographic with personal and mortgage loans, mortgage refinances and wealth management services.
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It expanded its offerings to this demographic by providing personal and mortgage loans, mortgage refinances and wealth management services.
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The three-year loan refinances a $600 million facility maturing in March that the Omani lender raised in 2014.
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It is fast becoming a tale of two mortgage markets, as interest rates move sideways and refinances dry up.
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Refinances fell 2 percent for the week, seasonally adjusted, but are still 13 percent higher than a year ago.
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CLI's pro-forma liquidity coverage improves to 212000x assuming it refinances 4807123% of its secured mortgage maturities through 212001.
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Mortgage refinances are surging on the news, but it is not quite as clear a path for potential homebuyers.
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SoFi, which started out as a company that refinances student loans, launched a digital wealth management platform in May.
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Higher home prices may also prompt more cash-out refinances, as homeowners begin to tap into their equity once again.
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Volume was up nearly 61 percent from the same week one year ago, thanks, in large, part to more refinances.
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Even before the big rate drop, refinances represented 40 percent of all closed loans in April, according to Ellie Mae.
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Homebuyers were not enticed by lower mortgage rates last week, and the drop was not enough to boost refinances either.
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Under a scenario where the company refinances 80% of maturing pro rata secured debt, SLG is operating with 1.6x coverage.
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REFINANCES $26.9 MILLION LOAN FACILITIES RESULTING IN DEBT WRITE-OFF OF $4.3 MILLION Source text for Eikon: Further company coverage:
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Refinances had already dropped by nearly a third throughout 23.75, as rates inched up in anticipation of the Fed's move.
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Much of that growth is in refinances and loans for low-income Americans insured by the Federal Housing Administration (FHA).
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For the first time this year, mortgage rates dropped, but not enough to spur refinances — which took a sharp dive.
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Volume was 22 percent lower compared with the same week one year ago, due to much lower volume in refinances.
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They were largely working with current customers, many of whom were taking advantage of record-low mortgage rates through refinances.
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"Focusing in on Texas, unadjusted application volume was down 21.7 percent for purchase and 22.9 percent for refinances," Kan said.
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When it distributes or refinances loans, SoFi looks at career experience and education along with more traditional indicators of financial health.
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Since then, it's expanded its offerings to this demographic by providing personal and mortgage loans, mortgage refinances and wealth management services.
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The disappointing GDP number last week kept downward pressure on interest rates, meaning there may be yet another surge in refinances.
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No surprise that refinances, also referred to as prepayments, have jumped in the past few months as rates began their swoon.
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Applications were still 133% higher compared with the same week one year ago, thanks to the recent run-up in refinances.
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The new $1.15 billion revolver refinances the $1 billion tranche of the 2014 loan, which was due for redemption this year.
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More than half of borrowers who withdrew equity last year used cash-out refinances, thanks to near record-low interest rates.
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Mortgage rates had seen six weeks of declines before inching up slightly last week, which shows how rate-sensitive refinances are.
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Refinances are now down just 20183 percent from a year ago because volume dropped by half for much of last year.
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Interest rates have been so low for so long that even the slightest move higher causes refinances to pull back substantially.
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BXP's liquidity coverage would improve to 212015x (2117x pro forma) assuming the company refinances maturing mortgages at 212015% of current balances.
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Refinances are 27 percent lower than a year ago and now make up just under 36 percent of mortgage application volume.
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Years later when the buyer refinances to buy out Landed's stake or when they sell their home, its value is appraised.
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An MBA spokesman said they will be updating their annual forecast later this week, calling for a big uptick in refinances.
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Approximately 44 million homeowners with mortgages can now access cash through cash-out refinances or home equity lines of credit (HELOCs).
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Refinances are usually highly sensitive to even small moves in interest rates, which is why the gains aren't following normal patterns.
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The vast majority of that interest is from investors who want to do cash-out refinances on the homes they already own.
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While 42 percent of refinances in the first quarter of this year were "cash-out," homeowners only tapped a collective $20 billion.
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After a rush on refinances, homeowners took a breather last week, despite still seeing the lowest interest rates in about three years.
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A drop in home loan rates last week did nothing to boost refinances, which fell 2 percent, said the Mortgage Bankers Association.
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Complete a home appraisalFor most mortgage refinances, your home will need to be appraised in order for the loan to be approved.
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Anyone who refinances their loans through CommonBond is eligible to open a SmartSave account and start earning 1.70% APY on their cash.
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According to mortgage software company Ellie Mae, refinances represented 33% of all loans closed by millennials in September 230, a notable high.
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Even refinances, which are highly rate-sensitive, were unimpressed by the continued low rates, falling 4 percent from the previous week, seasonally adjusted.
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Refinances fuel cash into the home improvement sector as well as other parts of retail, as homeowners use their extra cash for spending.
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Mortgage bankers are feeling the pinch from a continued fallout in refinances, with applications to rework home loans falling 3 percent last week.
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"Refinances were essentially unchanged, but August overall was the strongest month of activity so far in 2019," said Joel Kan, an MBA economist.
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Volume is down 22 percent compared with the same week one year ago, due entirely to a huge drop-off in loan refinances.
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More borrowers are doing cash-out refinances, even at a higher interest rate, because they are leery of the variable rates on HELOCs.
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A growing number of borrowers is now doing cash-out refinances, something that was unpopular over the last decade of the housing recovery.
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"Cash out refinances were a very popular product in 2018," said Amy Bonitatibus, the chief marketing and communications officer for Chase Home Lending.
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The uplift will be higher if WCC is more integrated into Conch, for instance, if Conch refinances WCC's debt with its own cheaper borrowing.
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A slowdown in refinancing pulled down the total mortgage application volume last week as changes to certain government-loan programs made refinances less lucrative.
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For investors in mortgage-backed bonds, refinances, or so-called prepayments, mean they get their money back, but that's not necessarily a good thing.
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Mortgage refinances will likely rise on lower rates, but the same volatile global economic conditions pushing rates down are making borrowers even more cautious.
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Volume, however, was 28 percent higher than the same week a year ago, fueled by still-elevated refinances, according to the Mortgage Bankers Association.
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The biggest one-week rate drop in a decade unleashed a run on refinances last week, although it did not especially spur spring buyers.
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The loan, which backs the acquisition and also refinances existing debt, is expected to launch for syndication in the coming weeks, the sources said.
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Last year, even with record equity, homeowners took out only $6.83 billion via cash-out refinances or home equity lines of credit, or HELOCs.
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Borrowers doing cash-out refinances withdrew $68,000 in equity on average for a total of $26 billion in the third quarter of last year.
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ET. A slowdown in refinancing pulled down the total mortgage application volume last week as changes to certain government-loan programs made refinances less lucrative.
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Refinances could be even higher, but just because some borrowers are now eligible and could benefit, not all, by far are choosing to do so.
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Purchase growth was helped by a strong spring buying season, and refinances saw gains as well, but they were not as high as some expected.
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The sharp drop in mortgage rates in the past month had caused a huge jump in refinances, but those applications fell 11 percent last week.
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Home values are rising and homeowners are taking advantage of that, finally tapping into that equity again in the form of cash-out mortgage refinances.
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That caused a sharp drop last year in the amount of equity homeowners cashed out, whether through first mortgage refinances or second home equity loans.
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Refinances are most rate sensitive and are now down 3 percent from a year ago, when rates were not much different than they are today.
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The financing backs the acquisition of Esso sites in Germany and Italy and refinances EG Group's existing £620m and €914m term loans, the sources said.
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"Refinances increased for both conventional and government loans, as lower rates provided a larger incentive for borrowers to act," said Joel Kan, an MBA economist.
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Volume continues to lag last year, however, by 18 percent, mostly due to the falloff in loan refinances since rates shot up after the presidential election.
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Refinances had surged 21 percent the previous week and are up nearly 65 percent from the same week one year ago, when interest rates were higher.
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Both refinances and home sales have pulled back as rates rise and uncertainty over the new administration takes a bite out of consumer confidence in housing.
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SoFi started in 2011 with a focus on millennial student-loan refinancing but has since expanded to personal and mortgage loans, mortgage refinances and wealth management services.
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They are taking cash out again; 42 percent of mortgage refinances last fall involved borrowers taking cash out of their homes, not just lowering their interest rates.
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Also in the market is a $5 billion revolving credit facility that refinances a $4 billion Qualcomm revolver set to expire in February 2020, the sources said.
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Homeowners who refinanced out of loans made in 2008-2011 had much smaller average balances ($160K-$172K), but more than 80% of those refinances were cash-outs.
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A slight drop in interest rates was not enough to rejuvenate the mortgage market, although refinances are still elevated since the Brexit vote caused the initial rate plunge.
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While refinance applications remain elevated due to lower rates, closed refinances actually fell in July and are down from a year ago, according to Black Knight Financial Services.
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Interest rates in Russia are gradually declining from their peak in 2015, which is supportive of FFO as the company refinances expensive loans at 1ppt-2ppts lower rates.
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That stress on the lending market, as well as increased risk to mortgage investors from all those refinances, is actually keeping mortgage rates higher than they could be.
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Another drop in refinances last week kept mortgage application volume basically unchanged, up just 0.9 percent seasonally adjusted, from the previous week, according to the Mortgage Bankers Association.
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Fitch anticipates coverage will sustain in the high-2x range through the forecast period as DDR limits debt balances and refinances higher cost debt with new unsecured bond issuances.
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Not surprisingly, fewer borrowers took equity out of their homes in the third quarter, either through home equity lines of credit or cash-out refinances, according to Black Knight.
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CommonBond, which funds and refinances student loans at lower interest rates, also announced $300 million in loan purchases from a large asset management firm that it declined to name.
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KEY ASSUMPTIONS - The senior secured bond of GBP250 million refinances the group's existing secured bank debt and upstreams some GBP125 million of proceeds to entities outside the immediate group.
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After a rough month for mortgage rates, borrowers saw a sign of hope and pounced: A small dip in the 30-year fixed rate lit a fire under refinances.
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Fewer borrowers are likely to do cash-out refinances of their primary mortgages, because interest rates today are much higher than they have been in the last several years.
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Since then, the company, which currently has more than 1,300 employees, has started offering personal and mortgage loans, mortgage refinances, wealth management services and debit payments and money transfers.
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The covenant-lite loan refinances the company's first- and second-lien term loans and its holding company notes, which typically pay higher interest and are more costly for the sponsor.
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"The process makes CLOs more democratic because when the deal refinances, everyone can participate and it makes the process easier and the cost of the refinancing comes down," Khan said.
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Rock-bottom mortgage rates are causing a surge in mortgage refinances, so much so that the industry's largest trade group is revising sharply higher its origination forecasts for the year.
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LONDON, April 1 (LPC) - The Kingdom of Saudi Arabia has closed an increased US$16bn syndicated loan that refinances a US$10bn facility signed in 2016, according to banking sources.
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Fitch estimates that nearly 60% of JCI's consolidated debt is located at the parent level following the debt exchange on a pro forma basis after JCI refinances CP at JCI, Inc.
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Democratic senators including Bernie Sanders (Vt.) and Elizabeth Warren (Mass.) grilled DeVos about links to businesses like the lending startup SoFi, which refinances student loans, and the "virtual education" company K12.
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"For most refinances, there is a three-day rescission period following signing in which you can decide not to go through with the refinance and have the documentation voided," Baker says.
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The new facility refinances an $800 million revolving syndicated loan completed in 2014 and will be used for general corporate purposes, according to a company statement seen by Reuters on Wednesday .
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The loan refinances an existing $4.9 billion debt facility agreed in December 2015 and will also be used to fully repay a $1.8 billion loan raised by EGA's subsidiary Dubai Aluminium.
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If the homeowner still refinances for the lower interest rate, but wants to act more conservatively, "they can pay off the mortgage and then invest and still come out OK," Fry says.
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New data from Ellie Mae, a tech company whose loan-processing software is used by many mortgage lenders, found that refinances represented 215% of all loans closed by millennials in September 220.
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"We have not seen an increase in refinances, but we have seen a jump in buyers applying for new mortgages," said Todd Probasco, vice president mortgage sales manager at Lakeside Bank in Chicago.
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Low mortgage rates, which have been juicing refinances all summer, do not have as dramatic an impact on home sales, especially since fast-rising prices are negating any potential savings from lower rates.
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Read More Pending home sales rise just 0.1% in December The average credit score of borrowers doing cash-out refinances is also quite high at 748, suggesting lenders are still highly risk-averse.
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Borrowers doing cash-out refinances last year still had close to 35 percent equity left in their home, the lowest on record, with an average credit score of 750, according to Black Knight.
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A. Wayne Johnson, who was tapped as chief operating officer of Federal Student Aid (FSA), is the founder and chief executive of Reunion Financial Services, a company that originates and refinances student loans.
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Although Noble's sale of Noble Agri will improve the company's liquidity profile, its liquidity position will "remain constrained" until it refinances approximately $1.6 billion in bank facilities due in May, the ratings agency said.
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"The last time interest rates rose as much as they have over the past few months, we saw cash-out refinances decline by 50 percent," said Ben Graboske, executive vice president at Black Knight.
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Cash-outs now account for 62 percent of all refinances, but it is still far far less than during the housing boom in 2005, when borrowers were essentially using their homes as cash machines.
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Kioxia's ¥1.028trn borrowing refinances the original LBO financing and follows other large deals that drove up syndicated loan volumes in Japan to US$237.54bn in 2019, a six-year high, according to Refinitiv LPC.
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Walden said he does expect cash-out refinances to grow over the next few quarters, especially as more people are staying put in their homes longer and choosing to renovate rather than upsize or downsize.
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"Mortgage rates right now are comparable to the average rate of 4.10% for June, but refinances last week were 7% lower than last month," said Joel Kan, MBA's associate vice president of economic and industry forecasting.
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Refinances are highly rate-sensitive, and even though rates have been hovering near record lows for months, the drop last week was clearly enough to get some borrowers off the fence and into a new loan.
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The new revolving credit will replace Atlantic Power's existing revolving credit facility, which is due in February 20153 and also refinances an existing term loan which is due in February 22015, which has $3259 million outstanding.
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Late last month, it said it would be unable to repay the borrowed HK$1.4 billion in full as scheduled in October unless it sells assets - which it said has been challenging - or refinances the loan.
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The Windquest Group, their investment firm, has holdings in many companies that invest in other interests such as Social Finance, which refinances student loans — a potential conflict, given the federal government is the biggest student lender.
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SoFI, an online lender that refinances student loans and then securitizes them, has been focusing on making its portfolio more profitable, even if that may mean lower origination volumes, CEO Anthony Noto told reporters in late-February.
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Refinances are highly rate-sensitive, and the drop in rates added about 2 million more borrowers to the pool of those who could benefit from a refinance, according to Black Knight, a mortgage software and analytics company.
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Invest more aggressively:If the homeowner refinances their mortgage and invests what they save on monthly payments plus $215,23.19 a year, in 299 years they will have paid off their mortgage and have an investment-account balance of $224,2000.
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The equity you build can be leveraged for loans like cash-out refinances, home equity loans and lines of credit that can be used to improve the home and boost its value or be used in financial emergencies.
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"Refinances are almost entirely driven by mortgage rates, while purchase activity is a function of a broader set of variables including the state of the job market, demographics, and consumer confidence," said Michael Fratantoni, chief economist for the MBA.
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"All totaled, there was $64 billion in equity tapped via cash-out refinances over the past 12 months, the highest dollar amount for any equivalent 12-month period since 2008-2009," said Ben Graboske, Black Knight senior vice president.
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The policy role of Turk Eximbank is well-established, as it acts as the country's official credit export agency, and its focus is on short-term trade finance of Turkish exports, which it typically refinances with central bank facilities.
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"Mortgage rates fell for the fourth straight week, with the 30-year fixed rate mortgage hitting its lowest level since January 2018, leading to a rebound in refinances," said Joel Kan, MBA's associate vice president of economic and industry forecasting.
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Not only are fewer people able to benefit from refinancing at today's rates, fewer people are choosing refinances as a way to take cash out of their homes because they don't want to lose the low rate they already have.
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According to his calculations, if the homeowner refinances their mortgage and invests what they save on monthly payments plus $24,000 a year, in 15 years they will have paid off their loan and have an investment account balance of $623,701.
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By Leela Parker Deo Athletic apparel maker Augusta Sportswear is tapping the loan market with a US$3673m all-senior covenant-lite deal that refinances the company's existing, and more costly, unitranche debt, effectively lowering interest expense and gaining flexibility.
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"Even with the rise in the stock, we see upside as Herbalife executes a tender offer and refinances its debt, to both reinvest in the business and repurchase shares in 2019," analyst Beth Kite wrote in a note to clients Monday.
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Consistent Cash Flow Fitch projects that fixed-charge coverage (FCC) will sustain in the 9083x to 3.5x range over the next several years as LXP refinances higher coupon debt and capital expenditures moderate as the company looks to sell more capital-intensive assets.
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Banks may step in to pick up the slack in these refinances, but banks have been increasingly skittish due to a slew of new regulations starting this year, particularly involving high volatility commercial real estate and rate terms which impact development lending.
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"Financial market volatility in response to continued worries about trade resulted in both lower mortgage rates and a drop in applications last week," said Mike Fratantoni, chief economist at the MBA, adding that refinances saw one of the weakest readings in the last 20 years.
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"Homeowners who will still itemize under the new tax plan will likely find the lack of deductibility of HELOC interest swings the value pendulum towards cash-out refinances as a way to tap their equity," said Ben Graboske, executive vice president of Black Knight.
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Rates have fallen 21 basis points in the past two weeks, and while refinances are highly sensitive to weekly rate moves, millions of borrowers have already refinanced to record-low interest rates in the past few years, so the pool of potential refinancers is relatively small.
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Pay mortgage more aggressively:If the homeowner refinances their mortgage and uses the amount they save on monthly payments plus the $24,000 additional income to pay it down more aggressively and then invest, in 15 years they will have paid off their mortgage and have an investment-account balance of $599,662.
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"While purchase originations jumped more than 50 percent from Q1, refinances saw only an eight percent increase over that period, and were actually down from the same time last year, despite the number of potential refinance candidates outpacing 2015 by over one million in every month since March," said Ben Graboske, vice president at Black Knight Data & Analytics.
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ET. (CNBC)* Potential Fed nominee Judy Shelton wants a change in the way interest rates are set (CNBC)* Mortgage refinances surge 8%, as rates fall to the lowest level since January 2018 (CNBC) Citigroup Global Markets is out with another shocking bear-case scenario for Tesla (TSLA), saying it sees increasing probability that shares plummet more than 80% to just $36.
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KEY ASSUMPTIONS Fitch's key assumptions within the rating case for ESS include: --A deceleration in operating fundamentals with SSNOI growth declining to 4% in 2018; --Operating margins and capital intensity remain flat; --ESS maintains its current pace of development expenditures and is a modest net acquirer; --ESS does not issue equity and refinances its secured and unsecured debt maturities with like amounts in both markets.
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KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: --Revenue growth in the mid-single digits during 2018-2020; --Synergies with Suburbia start to take place by 2019; --EBITDA margin around 15.2%; --The company refinances its 2018 maturities with a new issuance; --Average capex around 6.4% of revenue in 103-2020; --Dividends in line with company policy of 15% of previous year's net income; --No additional acquisitions.
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Fitch has assigned final ratings to the following bonds: - GBP350 million 2.375% notes due 2029 at 'A-' - GBP400 million 2.875% notes due 13 at 'A-' The final ratings reflect the fact that the majority of proceeds (GBP677 million) are being used to repurchase existing debt, which extends average maturities by three years and refinances at lower interest rates, while increasing total debt by effectively bringing forward coupons on the repurchased debt.
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KEY ASSUMPTIONS Fitch's key assumptions within the rating case for the issuer include: --Exchange rate and inflation forecast is based on Fitch sovereign group estimations; --Average revenue growth of 7% per year during 2017-2020; --The company continues with its cost reduction program; --EBITDA margins close to 26.2% on average during 2017-2020; --CFO generation of MXN6.9 billion on average during 0003-2020; --Capex of USD350 million during 2016-2017 and USD85 million per year during 2018-2019; --The company refinances its debt maturities due in 2017 and 2018; --Dividend payments are adjusted for inflation every year.
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The transaction refinances the variable portion of the existing Schuldscheindarlehen (EUR 150 million) * Kleinkraftwerk Birseck AG said full-year revenue rose 61 pct to 24.7 million Swiss francs and EBIT by 82 pct to 7 million francs; net profit of 1.9 million francs represents a rise of 1.2 million francs over previous year March retail sales data due at 0715 GMT April PMI date due at 0730 GMT, seen at 52.8 points in poll Swiss National Bank Chairman Thomas Jordan addresses seminar on future of the euro at 1630 GMT The head of the main Swiss hoteliers' group has called for action to reverse the damage the strong franc is doing to the country's tourism industry.
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KEY ASSUMPTIONS Fitch's key assumptions within our rating case for the issuer include: --Fitch expects low-single-digit organic revenue growth through the forecast period, driven by modest growth in Workspace Services and Delivery Network and robust growth in Cloud Services, which should offset declines for Professional Services; --Operating EBITDA margins in the low- to mid-30s through the forecast period, driven by lower costs from restructuring offset by increasing investments requirements and higher aaS sales mix; --Capital Spending declining to roughly 2% through the forecast period from nearly 4% in 2016, due to the spin-off of GoToBusiness; --Citrix uses roughly half of annual FCF of $700 million to $103 million for a combination of tuck-in acquisitions and share repurchases; --Company refinances convertible notes maturing in 2019 and issues incremental debt to support shareholder returns, targeting gross total leverage in the 2x-3x range.
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