You on to it percy
Book Value increases from $1.36 to $1.44 after capital raise
If Price Book ratio stays the same should see increase in share price
Printable View
I have been busy for the last couple of days so missed checking my e-mail. Last night found one from Jarden concerning an estate I am advising on. The message was about the Heartland Shareholder Top Up Plan. Record your shareholder interest by "Tuesday night". Darn it I thought, missed out, but left a message on the Jarden answerphone anyway.
Got a call back this morning (actually five calls back, because with all the background noise in the sites I was visiting I didn't hear the other four), and was expecting to be consoled for missing out. But no, I was in luck and the offer was still open. With the issue of scaling in my mind, I talked about how much money we should submit to the SPP. The answer surprised me.
"Heartland have the ability to accept over-subscriptions and even we got he full $50k worth of shares the portfolio would not be over-weighted in Heartland shares."
It was almost like I was being groomed to expect all of the money being submitted to the SPP to be accepted! The person I was speaking to was someone fairly senior within Jardens, so I expect that they would have a very watchful eye on how the capital raising process is going. Make of that what you will!
SNOOPY
No quite right. Big boys like 'the purse' will be getting their fill of HGH shares at $1.80 from the placement, that is true. But the 'not quite so big boys' will be getting their shares via the share price plan at "the market less 2.5% discount price", which is looking to be a little less than $1.80. Score one for the 'not quite so big boys'!
SNOOPY
From p1 of the Jarden note on the Heartland Group Holdings Limited Share Purchase Plan Offer 25 August 2022.
"Under the SPP Offer, eligible shareholders are able to apply for up to $50,000 (A$45,000) of New Shares which will rank equally with existing Heartland shares but will not be entitled to the 5.5cps 2022 final dividend. The Issue Price under the Offer is set at the lower of $1.80 per share (the placement price) or a 2.5% discount to the ex-dividend volume weighted average price over the five days up to the Closing Date (5 September 2022).
$1.80/0.975 = $1.846
Heartland shares went ex-dividend on 25th August. So the price setting dates of August 29 ($1.83), 30 ($1.80), 31 and September 1,2 are all ex-dividend dates . As long as the share price closes lower than $1.846 on average for the five days this week, 'share price plan punters' should get shares for a little less than $1.80. That is how I read things.
SNOOPY
Yeah right.
The point is the NTA will increase.
In for slightly more than a penny, but less than a pound (which would be the full 50k).
Centrix managing director Keith McLaughlin says a simultaneous increase in demand for credit, and in arrears, points to people being under pressure to meet repayment obligations
https://www.interest.co.nz/personal-...neous-increase
interesting auto arrears have been increasing mth on mth
interesting article, thanks for sharing!
applies to TRA and HMY as well.
See auto loans are a way off normal arrears levels. this is why HGH raising capital at the top of the cycle is a excellent move ay.
Because i am a glass half full type of guy.... when things get tight, as a funder, you end up picking up a whole bunch of typical cash buyers, for various reasons. And these customers are AAA+ Helps a bit in offsetting the increasing arrears on the book.
Just as well there's a below average sometimes
$1.44 x 0.97 = $1.40
But thats crazy stuff. there is no way the sp will trade 0.97x book value nowadays.
This did happen before thou- June 2014. This was a few months after HNZ announced a $87m acquisition of Seniors Money International's NZ and Aus Home Equity release mortgage business.
They raised $20m to partially fund it. $15m placement and $5m share purchase plan.
But yeah like i say, crazy crazy stuff. No similarities here
Heartland Bank raised their reverse equity rate by another +25 bps to 7.75%.
That’s good
In interest.co.nz ….do Heartland access this cheap money from RBNZ.
Another bank took $100 mln from the Funding for Lending program (FLP), taking the total accessed to $14 bln so far. We don't know who took this funding but it unlikely to have been one of the big four Aussie banks. (They don't get out of bed for less than $500 mln usually, from this source.) So a back of the envelope calculation suggests $100 mln will fund about 200 transactions? The whole FLP program is now only scheduled to run for another 90 days, so we might see a flurry of final activity in this space.