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Have you got inside info ?
Good news on financing close! We are all going to be very rich my fiends
Evraz undercover in New Romney ive heard.
Ivan Lindsay brunette u legend
5p by end of next week?
……the ball and chain is that’s hanging round the sp’s neck? Another contract, another damp squib day.
50m cash raise
Dilution through warrants
Libor plus 3% interest coming back soon
Restructuring a new finance deal
Who knows but we’ll all find out soon
Looks like the calm before the storm
Buy the rumour,sell the fact :)
Above average volumes....and share price barely budges
Knew you'd know you praet
its called liquidation
MMMMMMMMM A lot of big trades today??????
Imagine 10 years of a 3-4p dividend starting in 2024! We are going to be very rich my friends
Ah, yes, my mistake, no PIK interest then I guess since leverage is already sub 5.0x. For some reason I thought I read somewhere it had to be below 4.0x to avoid incurring PIK. Will double check that myself in due course.
@4C: "They could have refinanced end of this year and avoided the PIK+dilution" ....I don't think they'll be in a position to refinance until they've got leverage down well into the 3x's.
@ 4C: "Not sure of taking private when 2 investors control 55% of the votes, with each one holding atleast 25% - if there ever was a deal to be done,should have happened already?Why wait to get diluted by the banks to buy/sell" Agree - if SEAFOX/Man Capital/Mazroui wanted to take 100% I struggle to see why they havent already. They essentially already have control as it is with 55%....and which they managed to obtain at quite an attractive price. Going for the additional 45% is not likely to be seen by them as an efficient use of capital. Therefore, my medium/long-term fear of GMS being taken private, and therefore game over on this name, is a comfortably low risk.
@4C: ".still looks like no takers for this in public or private domain & stocks in the energy sector are up significantly this year" I don't really mind if the share price languishes for some time. It will re-rate with time. The turnaround story is fundamentally very robust. I am in this for the future dividend yield on cost. A 2-3p divi by 2025/2026/2027 when debt is negligible and EBITDA is around USD130m will be very juicy. We're talking a 7-10x capital gain and a dividend yield on cost of north of 30% per annum (based on my in-price). (Assumes leverage < 1.0x and EV/EBITDA conservatively on 7.0x).
The broken clock is right about twice in a day?
Smile boys! We are going to be wery wich!!!!!!!
Thank you for clarifying there won't be PIK since debt is not 5x ebitda
From the 2021 Common Terms Agreement
All of the loans carry an interest rate of LIBOR plus 3 per cent. until 31 December 2022. Thereafter, the interest rate on the term loans will be LIBOR plus 5 per cent., and for the working capital loans it will be LIBOR plus 4.75 per cent. The margins over LIBOR are subject to a ratchet, that will lower the applicable margin as the Group’s leverage improves.
As the Company has previously announced, by removing the obligation to pay PIK interest during calendar years 2021 and 2022, this has saved the Company over U.S.$38 million of interest that otherwise would have been payable under the terms of the 2020 Common Terms Agreement.
However, PIK interest would accrue under the terms of the 2021 Common Terms Agreement if either of the First Equity Raise Condition or Second Equity Raise Condition are not met. If such PIK interest were to accrue, it would be at 5 per cent. per annum for so long as leverage remains above 5x. If PIK interest begins to accrue as a consequent of the First Equity Raise Condition not being met, all accrued PIK would be automatically cancelled if and when the Second Equity Raise Condition is met.
AA2020 - you've been right about this whole thing....ebitda should be 85-90m next year on another contract or two....still looks like no takers for this in public or private domain & stocks in the energy sector are up significantly this year.They could have refinanced end of this year and avoided the PIK+dilution.Not sure of taking private when 2 investors control 55% of the votes, with each one holding atleast 25% - if there ever was a deal to be done,should have happened already?Why wait to get diluted by the banks to buy/sell?
@mcatee - got a bit tired waiting for that much promised take off to 12p this summer, or was it the aussie summer? 5 yrs for 50% return and staying exposed to another cycle.Better places to get it than this slow burner saga....demand better or faster returns from illiquid paper.....or try harder with your ramping
A small dividend???? By they they would be able to pay 3p dividend - more than 50% of current share price! Imaging getting the share price back in dividends every two years! Even that muppet 4corners may be happy with that!
Well, it seems like they'll just issue some warrants to the banks and incur PIK interest for a few months into 2023 until leverage is sub 4.0x. Then, by around 2024 when leverage gets to around 3.0x they'll refinance. All legacy contracts more or less finished by then, new contracts are on substantially better day rates, utilisation expected to remain strong.....so by 2025/2026 they'll probably have negligible debt and start paying a small dividend. That is of course if they're not taken private by then.
And the vote's in-i am keen on how they maneuver the debt issue now with this.
Bunch of banks,mostly from UAE + HSBC
Who owns all the debt?