Macquarie Telecom bumps up earnings forecast

Company pays off net debt of $14.6 million

Macquarie Telecom (ASX: MAQ) revised its forecast earnings before interest, tax, depreciation and amortisation (EBITDA) to $26 million-$26.5 million for the 2015 financial year.

This is an upgrade from its previous forecast in May, where the company expected a full year EBITDA of $24 million.

Total capital expenditure is estimated to be $20 million, of which $15 million was recurring maintenance CAPEX.

Macquarie Telecom now has $25 million in cash following the settlement of $40.3 million in funds for the sale and leaseback of the Intellicentre 2 data centre.

Some of the $40.3 million was used to pay off net debt of $14.6 million.

Keppel is spending a total of $43.3 million to acquire the land and building which was completed in 2011.

In May, Macquarie Telecom decided to release the capital from the data centre.

It will retain Intellicentre 2's mechanical and electrical plant plus fixtures and fittings.

Macquarie Telecom has entered into a 20 year lease with two five year options on Intellicentre 2.

CEO David Tudehope said the sale and leaseback results in a “significant balance sheet” flexibility to explore future growth opportunities which are currently under review.

In April, Vocus Communications (ASX: VOC) took a 14.5 per cent stake in Macquarie Telecom.

According to an ASX statement, Vocus "currently has no intention other than to hold the stake as a strategic investment".

The investment is not expected to have a material effect on Vocus’ business and operations or its financial position.

Vocus acquired the interest in Macquarie Telecom under an equity swap transaction for consideration of $15.619 million, payable on settlement of the swap transaction.

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