Consolidated Water Co. Ltd. Debt Disclosure
| | | December 31, | | ||||
| | | 2016 | | 2015 | | ||
| Demand loan payable with an original balance of $10.0 million, payable in quarterly installments of $500,000 with the remaining principal balance due on May 14, 2016, if not called by the lender; bearing interest at LIBOR plus 1.5%. | | $ | - | | $ | 7,000,000 | |
| | | | | | | | |
| Working capital loan from related party to Aerex bearing interest at 1% per annum and payable on June 30, 2017 | | | 490,000 | | | - | |
| Total debt | | | 490,000 | | | 7,000,000 | |
| Less current portion | | | 490,000 | | | 7,000,000 | |
| Long term debt, excluding current portion | | $ | - | | $ | - | |
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2016 | Mar 16, 2017 | Showing above |
| 2015 | Mar 15, 2016 | |
About Debt Disclosures
Debt disclosures detail a company's borrowing structure — the types of instruments, interest rates, maturity schedule, and covenant restrictions that define its financial obligations and flexibility. This section is essential for assessing refinancing risk, interest rate exposure, and the margin of safety against financial distress.
Key signals: the maturity schedule reveals concentration risk — large maturities within 1-2 years during tight credit markets can force dilutive refinancing or asset sales. Compare the fair value of debt against carrying amount to gauge whether the market views the company's credit risk differently than the balance sheet suggests. Watch covenant compliance disclosures for tightening cushions, especially leverage and interest coverage ratios. Variable-rate debt exposure quantifies sensitivity to interest rate changes. Secured versus unsecured mix affects recovery rates and future borrowing capacity. Compare net debt-to-EBITDA against industry peers and covenant limits to assess financial health.