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Business Recorder
20-06-2025
- Business
- Business Recorder
KPK budget FY26
EDITORIAL: Khyber Pakhtunkhwa (KPK) unveiled a 2119 billion-rupee budget outlay for next fiscal year with a projected surplus of 157 billion rupees — an amount that is lower by 15.8 billion rupees from what was budgeted by the federal government as its share in the 1217 billion-rupees provincial surplus (based on 14.62 percent KPK's share in the divisible pool). Given that the Sindh government budgeted a deficit of 38 billion rupees, instead of a surplus of 298 billion rupees budgeted by the federal government, a critical partner in propping up the PML-N government at the Centre, the KPK government's surplus must have come as a pleasant surprise for the Centre. In this context, it is relevant to note that the Sindh government has cited major risks associated with federal transfers pledged in the budget given that it is a usual occurrence for the federal budget to present unrealistic tax targets (in the current year the shortfall is projected at one trillion rupees). However, the KPK budget formulators took the innovative and more appropriate measure to release a document titled 'Fiscal Risk Statement', which itemised a range of issues that would impact on the revenue and expenditure side of the budget, a list that includes: (i) general economic risks associated with geopolitical tensions, including with neighbouring countries, which present the possibility of potential disruptions in trade and investment flows, posing threats to economic stability and growth; (ii) specific fiscal risks associated with lower tax collections by the FBR than budgeted, leading to lower than budgeted total transfers to KPK which, in turn, was at a variance of negative 4 percent in two years — 2021-22 and 2022-23 — and which widened to negative 19 percent in 2023-24 and registered negative 8.79 percent in 2024-25; and (iii) structural or institutional risks. KPK's outstanding debt portfolio increased by 6.41 percent due to an increase in net receipts (disbursements less principal repayments) and decrease in foreign currency exchange rate from 285 to 280 which had a weighted average impact of -1.75 percent. However, it was rightly flagged that a portion of the province's foreign debt portfolio remains linked to variable international benchmarks such as the Secured Overnight Financing Rate (SOFR), Japanese Yen Tokyo Overnight Average Rate (TONA), and the Euro Interbank Offered Rate (EURIBOR). While recent trends indicate a slowdown or pause in global rate hikes, any future tightening by major central banks could increase the cost of debt servicing. Two further observations on the budget are in order. First, tax on agriculture income is budgeted at 130 billion rupees next fiscal year, the same amount that was generated in the revised estimates of 2024-25 (against the budgeted amount of 114 billion rupees in the outgoing fiscal year), which makes one wonder what is the expected implementation of the legislated tax on the income of farmers, as per the International Monetary Fund's condition, to be implemented from 1 July 2025 with the effectivity pre-dated to 1 January 2025. And secondly, Pakistan Tehreek-e-Insaf's flagship project, Insaaf Sehat Card plus programme, is budgeted to receive 41 billion rupees next fiscal year and coverage list of medical conditions has been expanded to include liver, kidney, bone marrow and cochlear transplants/implants and related issues. Preparing a medium-term strategy paper, as required by the multilaterals, does not add real value to the federal budget as it itemises a wish-list of the future with, if past precedents are anything to go by, little likelihood of being taken seriously by the economic team leaders. However, one would recommend to the federal government (as well as all other provinces) to prepare a fiscal risk statement each year that would go a long way in adequately responding to routine challenges to budgeted revenue and expenditure claims that sadly are routinely violated. Copyright Business Recorder, 2025
The Star
17-06-2025
- Business
- The Star
Exclusive-Musk's xAI is on track to raise $5 billion in fresh debt, following modest demand
FILE PHOTO: xAI logo is seen in this illustration taken, February 16, 2025. REUTERS/Dado Ruvic/Illustration/FIle photo NEW YORK (Reuters) -Elon Musk's xAI is on track to close on a $5 billion debt raise led by Morgan Stanley, despite tepid investor demand, according to two people familiar with the matter. The $5 billion debt sale, which includes a floating-rate term loan, a fixed-rate loan and secured bonds, will be allocated to investors on Wednesday, the two people said, asking not to be identified because the deal is private. xAI didn't immediately respond to a request for comment while Morgan Stanley declined. The floating-rate loan will be offered with an interest rate of 700 basis points over the Secured Overnight Financing Rate, a benchmark rate used to price bond deals, while the fixed-rate loan and secured notes will pay a yield of roughly 12%, said the two people, who were briefed on the deal. (Reporting by Matt Tracy, Tatiana Bautzer. Echo Wang and Davide Barbuscia, Editing by Dawn Kopecki and Chizu Nomiyama)
Yahoo
10-06-2025
- Business
- Yahoo
Morgan Stanley Seeks xAI Debt Buyers After Musk-Trump Feud
(Bloomberg) -- Morgan Stanley is reaching out to a broader pool of investors to shore up demand for a $5 billion debt sale for Elon Musk's artificial intelligence startup xAI Corp., a deal that offers a window into the fallout from the billionaire's feud with US President Donald Trump. Trump Said He Fired the National Portrait Gallery Director. She's Still There. Trump's Military Parade Has Washington Bracing for Tanks and Weaponry NYC Mayoral Candidates All Agree on Building More Housing. But Where? Senator Calls for Closing Troubled ICE Detention Facility in New Mexico California Pitches Emergency Loans for LA, Local Transit Systems When Morgan Stanley launched the debt offering early last week, it already had more than $3.5 billion in orders. Some investors took that as a sign that the deal would soon be oversubscribed, a goal that has been easily exceeded for other Musk-related offerings. As of Monday, though, demand had only risen to around $5 billion and the bank began reaching out to smaller lenders who had not been given access last week, according to people familiar with the deal. The firm still intends to finalize the investor list by June 17 as originally planned. Typically, banks want demand to be substantially higher than the actual deal size so they have more flexibility on pricing and terms. Morgan Stanley declined to comment. xAI did not immediately respond to a request for comment. The effort to borrow money for xAI, which is now worth $94 billion, offers one of the first indications of how the rift between Trump and Musk might hit Musk's broader network of private companies, which includes SpaceX and Neuralink. The market value of his biggest company, Tesla Inc., has fallen $42 billion since last Thursday when Musk and Trump took aim at each other on social media, recovering in the last couple of days from a steeper drop as tensions simmered down. The debt package includes a floating-rate term loan, a fixed-rate term loan and senior secured notes. Official price talk emerged Tuesday at a yield of about 12% on the notes and fixed-rate loan, according to people with knowledge of the matter, in line with levels previously reported by Bloomberg. The floating-rate loan is being discussed at 7 percentage points above the Secured Overnight Financing Rate, and a discounted price of 97 cents on the dollar, the people said. Some investors said they expected the company would have to hike yields to close the deal, people familiar with the negotiations said. Musk recently merged xAI with his social-networking platform X, formerly known as Twitter Inc., into a combined company called XAI Holdings. In meetings Thursday, investors who were willing to write checks of at least $50 million were allowed to view limited statistics about the company, including revenue, earnings, cash flow and projections, Bloomberg previously reported. The figures showed a company that is still spending far more than it brings in. But that had not dimmed enthusiasm about a company operating at the center of the fastest growing part of the technology industry. Investors were told last week that the company is worth $94 billion, up from $51 billion at the end of 2024. Credit investors were particularly excited because it offered them a rare opportunity to get exposure to the AI industry, which is generally only accessible to equity investors. Some potential lenders said they were initially drawn to the deal, in part, because of Musk's good relationship with Trump and are now approaching it with more caution because of the feud. Trump said last week that he would consider ending government contracts with Musk's companies. This is all a very different situation from a few months ago, when Morgan Stanley was selling some of the remaining debt from Musk's acquisition of X. The bank was able to easily unload the loans as Musk's relationship with Trump helped attract buyers. The value of those loans, which fell to as low as 95 cents on the dollar after the feud broke out on Thursday, have recovered to nearly 97 cents, according to Bloomberg-compiled data. --With assistance from Eliza Ronalds-Hannon, Jeannine Amodeo and Kevin Kingsbury. (Updates with official pricing discussions in paragraphs six and seven.) New Grads Join Worst Entry-Level Job Market in Years American Mid: Hampton Inn's Good-Enough Formula for World Domination The SEC Pinned Its Hack on a Few Hapless Day Traders. The Full Story Is Far More Troubling What America's Pizza Economy Is Telling Us About the Real One Cavs Owner Dan Gilbert Wants to Donate His Billions—and Walk Again ©2025 Bloomberg L.P. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
09-06-2025
- Business
- Yahoo
OR Royalties Announces Increase of Credit Facility and Positive Net Cash Position
MONTRÉAL, June 09, 2025 (GLOBE NEWSWIRE) -- OR Royalties Inc. (the 'Company' or 'OR Royalties') (OR: TSX & NYSE) is pleased to announce that it has amended its existing revolving credit facility (the 'Credit Facility'), including the conversion from a Canadian dollar denominated facility to a United States dollar denominated facility, as well as an increase in the overall size of the Credit Facility. Amounts presented are in United States dollars, except where otherwise noted. Under the amended agreement, the Company has access to a Credit Facility of $650 million with an additional uncommitted accordion of up to $200 million, for a total availability of up to $850 million. The previous credit facility agreement had a maximum amount of C$550 million with an uncommitted accordion of up to C$200 million. Advances under the amended Credit Facility are subject to interest at the Secured Overnight Financing Rate (SOFR) or Canadian Overnight Repo Rate Average (CORRA) plus 1.45% to 2.75% per annum, depending on the Company's leverage ratio, unchanged from the previous credit facility agreement. The Credit Facility has a term of four years, maturing on May 30th, 2029. Jason Attew, President & CEO of OR Royalties commented: 'The expansion of our Credit Facility underscores the strength and quality of our asset portfolio and reflects the confidence in OR Royalties' long-term growth prospects. Combined with our current cash balance, the enhanced financial flexibility provided by the upsized facility positions us well to pursue strategic and accretive growth opportunities. We extend our sincere appreciation to our financial partners, whose continued support since OR Royalties' inception in 2014 has been instrumental in our success. We are also pleased to report that, as a result of robust operating cash flows and disciplined capital allocation, OR Royalties now holds a positive net cash position, further reinforcing our solid financial foundation.' The amended Credit Facility was led by National Bank of Canada and includes Bank of Montréal, Royal Bank of Canada and The Bank of Nova Scotia, as well as Canadian Imperial Bank of Commerce, The Toronto-Dominion Bank, Bank of America N.A. (Canada Branch), Export Development Canada, and Fédération des caisses Desjardins du Québec. Separately, on May 27th, 2025, MAC Copper Limited ('MAC Copper') announced that it had entered into a binding scheme implementation deed (the 'Transaction') with Harmony Gold Mining Company Limited ('Harmony') and Harmony Gold (Australia) Pty Ltd ('Harmony Australia'), a wholly-owned subsidiary of Harmony, under which it is proposed that Harmony Australia will acquire 100% of the issued share capital in MAC Copper. Under the terms of the Transaction, MAC Copper shareholders will receive US$12.25 cash per MAC Copper share. As of June 9th, 2025, OR Royalties, through its wholly-owned subsidiary OR Royalties International Ltd., owns 4,000,000 shares of MAC Copper, which under the current terms of the Transaction are worth $49.0 million. This all-cash binding acquisition by Harmony will further strengthen OR Royalties' balance sheet upon closing, expected later this year. About OR Royalties Inc. OR Royalties Inc. is an intermediate precious metal royalty company which holds a North American focused portfolio of over 195 royalties, streams and precious metal offtakes, including 21 producing assets. OR Royalties' portfolio is anchored by its cornerstone asset, a 3-5% net smelter return royalty on the Canadian Malartic Complex, home to one of Canada's largest gold mines. OR Royalties' head office is located at 1100 Avenue des Canadiens-de-Montréal, Suite 300, Montréal, Québec, H3B 2S2. For further information, please contact OR Royalties Inc.: Grant MoentingVice President, Capital MarketsTel: (514) 940-0670 x116Cell: (365) 275-1954Email: gmoenting@ Heather TaylorVice President, Sustainability and CommunicationsTel: (514) 940-0670 x105Email: htaylor@ Certain statements contained in this press release may be deemed 'forward-looking statements' within the meaning of the United States Private Securities Litigation Reform Act of 1995 and 'forward-looking information' within the meaning of applicable Canadian securities legislation. Forward-looking statements are statements other than statements of historical fact, that address, without limitation, future events, that OR Royalties will be able to pursue strategic, accretive growth opportunities and that it will maintain a positive net cash position. Forward-looking statements are statements that are not historical facts and are generally, but not always, identified by the words 'expects', 'plans', 'anticipates', 'believes', 'intends', 'estimates', 'projects', 'potential', 'scheduled' and similar expressions or variations (including negative variations), or that events or conditions 'will', 'would', 'may', 'could' or 'should' occur. Forward-looking statements are subject to known and unknown risks, uncertainties and other factors, most of which are beyond the control of OR Royalties, and actual results may accordingly differ materially from those in forward-looking statements. Such risk factors include, without limitation, (i) with respect to properties in which OR Royalties holds a royalty, stream or other interest; risks related to: (a) the operators of the properties, (b) timely development, permitting, construction, commencement of production, ramp-up (including operating and technical challenges), (c) differences in rate and timing of production from resource estimates or production forecasts by operators, (d) differences in conversion rate from resources to reserves and ability to replace resources, (e) the unfavorable outcome of any challenges or litigation relating title, permit or license, (f) hazards and uncertainty associated with the business of exploring, development and mining including, but not limited to unusual or unexpected geological and metallurgical conditions, slope failures or cave-ins, flooding and other natural disasters or civil unrest or other uninsured risks, (ii) with respect to other external factors: (a) fluctuations in the prices of the commodities that drive royalties, streams, offtakes and investments held by OR Royalties, (b) a trade war or new tariff barriers, (c) fluctuations in the value of the Canadian dollar relative to the U.S. dollar, (d) regulatory changes by national and local governments, including permitting and licensing regimes and taxation policies, regulations and political or economic developments in any of the countries where properties in which OR Royalties holds a royalty, stream or other interest are located or through which they are held, (e) continued availability of capital and financing and general economic, market or business conditions, and (f) responses of relevant governments to infectious diseases outbreaks and the effectiveness of such response and the potential impact of such outbreaks on OR Royalties' business, operations and financial condition; (iii) with respect to internal factors: (a) business opportunities that may or not become available to, or are pursued by OR Royalties, (b) the integration of acquired assets or (c) the determination of OR Royalties' PFIC status (d) that preliminary financial information may be subject to quarter end adjustments. The forward-looking statements contained in this press release are based upon assumptions management believes to be reasonable, including, without limitation: the absence of significant change in OR Royalties' ongoing income and assets relating to determination of its PFIC status, and the absence of any other factors that could cause actions, events or results to differ from those anticipated, estimated or intended and, with respect to properties in which OR Royalties holds a royalty, stream or other interest, (i) the ongoing operation of the properties by the owners or operators of such properties in a manner consistent with past practice and with public disclosure (including forecast of production), (ii) the accuracy of public statements and disclosures made by the owners or operators of such underlying properties (including expectations for the development of underlying properties that are not yet in production), (iii) no adverse development in respect of any significant property, (iv) that statements and estimates relating to mineral reserves and resources by owners and operators are accurate and (v) the implementation of an adequate plan for integration of acquired assets. For additional information on risks, uncertainties and assumptions, please refer to the most recent Annual Information Form of OR Royalties filed on SEDAR+ at and EDGAR at which also provides additional general assumptions in connection with these statements. OR Royalties cautions that the foregoing list of risk and uncertainties is not exhaustive. Investors and others should carefully consider the above factors as well as the uncertainties they represent and the risk they entail. OR Royalties believes that the assumptions reflected in those forward-looking statements are reasonable, but no assurance can be given that these expectations will prove to be accurate as actual results and prospective events could materially differ from those anticipated such the forward-looking statements and such forward-looking statements included in this press release are not guarantee of future performance and should not be unduly relied upon. These statements speak only as of the date of this press release. OR Royalties undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, other than as required by applicable in to access your portfolio
