Hi Yellowcraig. Yes as far as I know. Gnl issued their first bond back in early 2014 for $500m senior (unsecured) coupon 7.5% maturing in 2019. Later this year they will call a bondholders meeting to merge the two bonds.
The two bond raises both unsecured are sometimes called debentures and as such are not pledged against any specific asset, but solely on the good faith of the issuer ( my word is my bond).These would generally attract a higher coupon rate than 'secured' bonds as the risk of defaulting is greater. The investors (Fosun/lead inv) has only our word to pay and no claim on our collateral. Also we may be entitled to 'call' the bond before due date, ie: pay back earlier, which we could well do. The "senior" relates to those who have a claim on a defaulters assets in getting paid first, ie higher up the food chain than "junior". Lenders must have complete confidence in Gnl ability to agree to the terms and that they are investing in a solid company. Why the markt ignored this I don't know I suspect it's the geo political stuff that surrounds Kurd oilies that's damaging sentiment and perception.
Remember guys circa 154p of our current sp is cash! Debt (176p) at 8.7% out till 2019 so very manageable. The balance of 328p or £898m must be the value the mrkt places on our 2p and contingent. Nav or book value is 914p* giving a margin of safety exceeding 50%.Looks a very good entry price for a lth. *inc bank borrowings.
Well done guys pretty much the bottom I'd guess, dont honestly know whether I'd have topped up (even if I'd had funds) as I'm being wiped out elsewhere and am shell shocked with these continual declines across my few stocks. Jeez I wouldn't mind if the CFO had run off with the cash or the co had issued 2-3 profit warnings but that's not the case at all! At my age and my horizons are short.....i suppose I should have stayed away, you young'ns can ride these volatile times out! Well we live in hope the turn must be now surely. I have pencilled in £200m ebita for this year on a low low estimate of boe and PoO.. Have a good we and to the guy who said " I love w/ends cos the markets closed" Bloody right!!
at an average of 479 over three tranches. Must be close to the bottom now as long as we don't get a big drop on oil or any really adverse news from that part of the world. Never expected to see it down here and fancied it in the 620-650 area at the start of the year!
JL, I feel for you as I've done shockingly badly the past year. The DGO move was luck since I realised I had enough exposure to Kurdistan. 12% gain there is only a quarter of what I need to get back from the losses across my portfolio. I re-entered here because I believe GENL is closer to a payment and it's due a technical bounce after the recent mauling. The bond issue is extremely positive and is merely an excuse for the algos to mark it down. My other tranche is bottom drawer stuff. GL mate and keep up the posts. You're not alone.
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