SML - Synlait Milk Ltd

[bull....]

OK im all in for the mighty sum of $200 today

[Balance]

One of these weird, almost unique situations where the logical expression of the "survival" trade was/is to buy the bonds. Simply due to the massive equity infusion required to keep the company alive and the uncertainty surrounding that.

They would have reached agreement already with the banks about the level of new equity required to refinance the bank debt into longer term debts.

One possible scenario - $200m to be raised via a 5:1 at 20c, underwritten by Bright. Depending on the shortfall, Bright will be hoping to increase its stake to over 60%.

[Balance]

Fly in the ointment for those of us looking for a play during the CR is if SML makes the rights non tradeable.

Now that would suit the underwriter(s).

[Balance]

Fly in the ointment for those of us looking for a play during the CR is if SML makes the rights non tradeable.

But that would suit the underwriter(s).

[bull....]

we want a rights issue where existing s/h can apply to purchase as many shares as they want in the rights issue

[Balance]

SML sp on the move - 27c vs low of 20c last week.

Must hand it to SB888 who braved the doomsday merchants and bought last week.

Not for me still though - I prefer to wait for the CR.

Only issue now is that the CR rights may not be tradable and that would be a bummer.

[Bikeguy]

SML sp on the move - 27c vs low of 20c last week.

Must hand it to SB888 who braved the doomsday merchants and bought last week.

Not for me still though - I prefer to wait for the CR.

Only issue now is that the CR rights may not be tradable and that would be a bummer.

Yes, brave move, well done!

[Doug]

One possible scenario - $200m to be raised via a 5:1 at 20c, underwritten by Bright. Depending on the shortfall, Bright will be hoping to increase its stake to over 60%.

That would trigger a change of control event on the bonds which entitles immediate repayment. Since the bonds are probably their cheapest debt I imagine they will be thinking hard about how to delay this event.

[Balance]

That would trigger a change of control event on the bonds which entitles immediate repayment. Since the bonds are probably their cheapest debt I imagine they will be thinking hard about how to delay this event.

Good point.

One way would be to stretch out the CR and the resulting shareholding change until say, October. That way, there is only 2 months left for the bonds to mature.

[winner69]

A2 keeping quiet over voting intentions

Maybe not going to vote …sometimes a good strategy

http://nzx-prod-s7fsd7f98s.s3-websit...095/422255.pdf