We've ASM in a week's time on next Wed 27th, it'll be interesting how that culminates on back of today's A2M's meeting.
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We've ASM in a week's time on next Wed 27th, it'll be interesting how that culminates on back of today's A2M's meeting.
I'd bet my last dollar ATM screwed them down even further on their extended supply contract announced today. SML are ATM's whipping boy...
possibly raising money to pay out someone?
https://www.nzx.com/announcements/344722
Gearing with senior debt last time I looked was a whopping 57%, possibly quite different now, DYOR. Investors would do well to consider the word "subordinated" and what it means in the context of this company. That won't stop the issue being successful because all a lot of retail investors will see is the Synlait name, (without any understanding of the Pokeno risk) and the interest rate.
Probably wise as a contingency to raise some money now and they can always tap shareholders for more if the custard really hits the fan.
Interesting idea. They say to repay existing bank debt, but who knows.
Order of magnitude ($150m with option for up to $50 m over-subscriptions) would be roughly half of the maximum damage an unfavorable (for them) court decision could inflict.
Interest rate not yet fixed, but Chris Lee says they expect interest rate to be set at roughly 4%. This would be 1 to 1.5% higher than current blue chips bonds. Quite a substantial risk penalty if he is right ...
unsecured AND subordinated ,
nasty.
Flew over the plant last week on the approached into Chch.
As well as the font, they had a couple of lovely bright pink paths or roading through the plant.
Sure W69 would have loved it.