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19-11-2019, 12:26 PM
#2771
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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19-11-2019, 12:29 PM
#2772
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...
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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19-11-2019, 02:03 PM
#2773
Originally Posted by Beagle
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...
I think SML is your whipping boy too Beagle
No doubt they've screwed them down - but not too hard - don't forget ATM owns a slice of SML.
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19-11-2019, 02:17 PM
#2774
Originally Posted by pierre
I think SML is your whipping boy too Beagle
No doubt they've screwed them down - but not too hard - don't forget ATM owns a slice of SML.
A2's synlait holdings contributed about 16 million dollars to last year's profits of 287 million. I'm not sure that's enough to make it worth them going easy on synlait, although I'm sure they have an interest in paying them enough to ensure their survival.
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22-11-2019, 09:45 AM
#2775
possibly raising money to pay out someone?
https://www.nzx.com/announcements/344722
one step ahead of the herd
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22-11-2019, 10:07 AM
#2776
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.
Last edited by Beagle; 22-11-2019 at 10:14 AM.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
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22-11-2019, 10:12 AM
#2777
Originally Posted by bull....
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 ...
Last edited by BlackPeter; 22-11-2019 at 10:13 AM.
Reason: close the bracket ...
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
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22-11-2019, 10:18 AM
#2778
Originally Posted by Beagle
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.
I was half expecting you to suggest the $150m is a nice backstop for the court cases, it’s the first thing I thought. As a holder I don’t think it’s a bad move although I really can’t see the custard flying as vividly as you can.
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22-11-2019, 11:26 AM
#2779
unsecured AND subordinated ,
nasty.
For clarity, nothing I say is advice....
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26-11-2019, 12:12 PM
#2780
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.
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