SML - Synlait Milk Ltd

[silverblizzard888]

Good outcome for both parties and good to have A2 supporting the capital raise. Announcement for capital raise should be anytime now.

[Bikeguy]

There certainly has. I purchased about a year ago at 17% and was never really worried (thought they had enough on the balance sheet to cover), but really was perplexed at the over 100% yields at times.

Fortune favours the brave in this instance.

Well done Blackcap, good on you for holding your nerve!!

[X-men]

There will be a CR next week

[Balance]

Good outcome for both parties and good to have A2 supporting the capital raise. Announcement for capital raise should be anytime now.

Final negotiations over the weekend and announcement next week.

[X-men]

Probably 28c a share CR

[X-men]

Lord.....to raise $90m...it needs to issue 300m shares... massive dilution to the existing shareholders....

Long..long way to recover...

[blackcap]

Lord.....to raise $90m...it needs to issue 300m shares... massive dilution to the existing shareholders....

Long..long way to recover...

I think they are looking to raise in excess of $200m from what I heard. I could be very wrong though. Massive dilution coming.

[Bikeguy]

With both SML and A2M both supporting the CR I will be participating, clearly SML is going to survive for another few years and without such a heavy debt load so I believe it has a fair chance of coming right…

[silverblizzard888]

They will have to raise a minimum of $200m, potentially up to $300m due to the $180m bond payment coming up because asset sales seem difficult in this environment and if you're going to raise you might as well do it all in one go and fix it straight away than raise a little and hope things improve.

[blackcap]

They will have to raise a minimum of $200m, potentially up to $300m due to the $180m bond payment coming up because asset sales seem difficult in this environment and if you're going to raise you might as well do it all in one go and fix it straight away than raise a little and hope things improve.

So about 4 x current market cap.

That makes it about a 5 for 1 rights issue at $0.30.

But if A2 and Bright both support and there is an underwrite, this will be a goer.

Tough on existing shareholders who will potentially have to turf in another $1.50 for every share they have.