Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
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Panmure Gordon
Pull up the what!
Not needed if they don't breach certain financial covenants, all of which are at very comfortable levels for this year and into next, with their backlog and outlook. Pull up the PG report if you can.
Forgot to add 4c another capital raise IS highly likely as the debt deal states.
Additional time has been granted to the Company to raise equity or (in the alternative) issue warrants. The previous PIK structure and deadlines for the issuance of warrants to the banks no longer apply; instead, providing the Company raises equity capital of a net $25m or more no later than 30 June 2021 (the "Equity Raise"), and raises further equity capital by 31 December 2022, taking the combined fund raising to at least a net $75m, it will not be required to issue any warrants nor will any PIK interest accrue. Any such proceeds raised will be used to reduce the Company's debt liabilities.
Think I’ll leave this one for now and look again after the dilution.
4C, it was in reference to H1
@ amtech
Revenue is north of $100m (not $50m) and Ebitda is about $63m this year, and possibly close to $80m in 2022. Between the second half of this year and entire next year, there should be enough cash generation to pay down $50m, barring any other crisis. So another capital raise is highly unlikely.
Well something has certainly spooked the market, unless, there is an institutional seller who sold down their holding over the summer, when volumes have been thin. I sold a few but still hold, along with GMS and JKX. If the market is going to correct I wish it would just get it over with! Good luck
Hi Beza. Happy to answer, but please accept some context about CAR without thinking me arrogant, but I made a lot of money there which colours what I’m about to say. I bought in volume around 6p and sold large quantities between 40-67p. So bottom line - I like the story, and retain a much smaller holding. The reason I haven’t repurchased yet is because I believe the selling may be linked to fears Carclo may struggle with current supply chain disruptions - hgv scarcity, higher fuel prices, brexit uncertainty - given high volumes of product in and out it is a business that may prove sensitive to those things. So I’m waiting to see what they say next before adding again. My concerns may be entirely misplaced but happy to wait. Hope that helps.
That’s correct, am. Bear in mind also that to participate in any further issue, you will likely have to own the shares and consequently the rights. If GMS can demonstrate an ability to generate $100m+ EBITDA annualised over the next 6-9 months, both the shares and attached rights are likely to be in high demand.
Without double checking I thought it was $75m in total including what they’ve already raised which I think was £20m gross.
Is it a further $75m or a further $50m by end 2022 ?
Hi Wigwammer. Although I have a small holding here I have a larger interest at Carclo… I know this is the GMS board but can ask of your views on CAR? Are you surprised with the price action there? Regards
Yes. But 2 points. 1) if they demonstrate they are annualising $100m+ EBITDA then any raise is likely to happen at a significantly higher market valuation than today, and hence be materially less dilutive. 2) banks like to lend against highly cash generative and asset backed businesses - they compete to do so - so if these fundamentals bear out there is every possibility GMS can refinance at least part of the debt on better terms, that do not require dilution. I suspect neither of these possibilities are priced in at sun 4p.
Didn’t they have to raise a minimum of $75m anyway before the end of 2022 as part of the debt restructuring with the banks ?
Apols - should read “may prove unnecessary”
Hi Amtech.. if they can refinance part of the debt over the next 15 months then the $50m equity raise may prove necessary. In 2022, EBITDA may well be annualising north of $100m, net debt below $300m, at which point the debt multiples and asset backing would suggest further dilution is unnecessary. In that event, the equity, currently capitalised at around $60m would be many multiples higher.
With $50m revenue and $375m worth of debt, reduced interest of Libor +3% which will ratchet back to libor +5% and a $50m minimum raise still to come before the end of 2022 i would say it’s happy where it is.
Why would I sell up (or down) to prove my cynicism of adults ramping this up (both here and advfn board) with rocket science terms since months.
Current levels do not price in any of the positive news that has come through in the last 3 months, not even a bit. And that should make everyone wonder if they are missing anything. What would make it double or triple, as it should? Asking that question is not whining.
Sometimes it requires patience, 4corners. If you don’t want to wait any more then you can always sell up, move on, and prove there is some conviction behind your cynicism. Otherwise, you just sound like a whinging toddler repeatedly asking the adults “are we there yet?”. ATB
If its so obvious, why hasn't it moved already, atleast to 5 levels?
Oil and gas prices motoring..few companies more geared to that cycle than GMS :)
Waiting for this rocket to take off to infinity and beyond
Its a shame that it can't hold the 4p handle for more than a day before some investor dumps it and pushes things down!
For 2022 perhaps $100-120m looks achievable as rates follow untilisation and they state 92% for H22021. The prospect of another equity raise in 2022 is receeding. Apart from the woeful financial reporting function, things look like they are ion track....
Churning nicely the 3p placing shares (many more left.....) ,obviously this is going to take some considerable time and as such any rise after positive news as today will be muted, but the business certainly on a strong recovery mode which will be rewarding holders with time on their side in due course, my guesstimate not before well into next year.
GLA.