The latest Investing Matters Podcast episode featuring Jeremy Skillington, CEO of Poolbeg Pharma has just been released. Listen here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Interestingly, when I last bought notes covering the AA '22 debt the yield to maturity was somewhere between 13-14%
I own some of the RAC 5.0% 2022. It would be more accurate saying I own "notes" that represent that bond.
Devonplay wrote " I hold positions in both RAC & AA. I prefer RAC..." - please tell us how you own RAC???
"Anyone could have made that up"
You mean like saying "their debt is being managed and is not due for renegotiation in the near term. 10 years ago the 2.3 billion debt would have been horrendous but today this amount of debt is not uncommon and the word billion is on many pages of any newspaper everyday. There is a game being played here. just can't work out what it is."
LOL
It's been in a newspaper, make of it what ever you want. It's one person opinion, as a bond holder I don't want the equity. I hold positions in both RAC & AA. I prefer RAC slightly at the moment, and might increase my position to it slightly in preference.
It's was news to me, interesting and I thought it might interest someone else.
Anyone could have made that up, their debt is being managed and is not due for renegotiation in the near term. 10 years ago the 2.3 billion debt would have been horrendous but today this amount of debt is not uncommon and the word billion is on many pages of any newspaper everyday. There is a game being played here. just can't work out what it is.
From Daily Telegraph
......
“We believe the AA could be worth more to the PE buyers than it is to the AA itself. We expect a PE buyer would restructure the debt and decrease the overall interest costs, translating into even higher free cash flows than the AA would earn independently.
“A typical private equity buyer will potentially be able to do things with the debt that the AA currently cannot do. If you have a well-heeled buyer come in and negotiate with debt holders, then I would expect them to bring some skills to this, and that is part of the attraction.”
.....
"Waiting in the wings is Wall Street buyout colossus Apollo, understood to be interested in providing a solution to the AA’s debt headache. Any investment from Apollo would likely come at a cost, sources say. A complex investment strategy that could lead to a debt-for-equity swap could well be on the cards, through one of the US firm’s hybrid funds."