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https://www.ipfin.co.uk/content/dam/ipf/corporate/investors/debt-funding-information/17.11.23%20-%20Supplement%20(23%20November%202017).pdf
The prospectus for the new bond..
cash and debt headroom of *£170 mil (approx)
(TYPO)
Once June bond repayed of 40.1 mil the company will have cash and debt headroom of £150 mil (approx) the £344 bond maturing April 2021, will need to be refinanced hence the move to release a prospectus for 1billion over a longer term . That's my take on it
2019 the Group added and refinanced £106 million of debt funding. In June, the Group
refinanced a proportion of the £101.5 million retail-eligible bond maturing 2020, with
£57.4 million of the existing bonds being exchanged, and £20.7 million of new bonds issued
for cash, to create a new £78.1 million 7.75% bond maturing 2023. The remaining
£44.1 million bonds not exchanged will stay in place until May 2020. In addition, the Group
added £28 million of new bank funding in 2019.
The Group’s debt funding position is summarised in the table below. At December 2019, the
Group had total debt facilities of £862 million (£542 million bonds and £320 million bank
facilities) and borrowings of £679 million, with headroom on undrawn facilities of £182 million.
The Group continued to extend debt facilities during 2019, and now has £322 million of facilities
extending beyond the Eurobond maturity in 2021. In the final quarter of 2019, the Group repaid
£14 million of bonds that matured, and bought back £5 million of 2021 Eurobonds at an average
price of 97.3% of par. The Group has two bonds totaling £84 million maturing in May/June
2020, and the £344 million Eurobond matures in April 2021.
Cash flow positive in April. Comforted re debt by the fact that we don’t have a credit crisis. Supportive governments/ economies.
Couple of institutions selling down - allowing for a cheap entry. £90m market cap. 25% ish dividend at this level had the final dividend been paid. Refinancing the debt due April 2021 the challenge, but the equity has been marked down to ridiculous levels surely..
IPF hopes to conclude the refinancing by year end, according to the Q1 update. The sp is highly geared to that event.
There was a few posts flagging up 400m euros bonds due (see the first post in this thread) ... which Is what i asked about.
In the FY rns the Euro-bonds due in April 2021 are referred to in GBP And not in Euros - £344mil value In GBP - at current exchange rate i think thats nearer 383mil euros Than 400mil but exchange rates can change. Not splitting hairs on exact amount i was more interested in how they will deal with that when it comes up.
Further to my last post, I see now where you might have got your €404mn Eurobond reference size from. The Q1 Update RNS! But then, how does that square with the Final Results RNS in which you refer to the £344mn outstanding April 2021 Eurobond issue? I am confused.
IPF states, " IPF is a well-capitalised and funded business and we have successfully served millions of customers for more than twenty years."
If this is so, how come the sp just made a new monthly low in May?
Ian.B, shouldn't that be £344mn maturing in April 2021? Still a large item, however, to roll over. I wonder what credit spread change it will entail, to get it away.
Thanks Zebbo - Found this in FY results - At December 2019 we had total debt facilities of £862 million (£542 million bonds and £320 million bank facilities) and borrowings of £679 million, with headroom on undrawn facilities of £182 million. We continued to extend debt facilities during 2019, and now have £322 million of facilities extending beyond the Eurobond maturity in 2021. In the final quarter of 2019, we repaid £14 million of bonds that matured, and bought back £5 million of 2021 Eurobonds at an average price of 97.3. We have two bonds totalling £84 million maturing in May/June 2020, and our £344 million Eurobond matures in April 2021. The settlement of the Polish tax dispute removes a significant liquidity risk for IPF and this, combined with the high level of headroom on undrawn debt facilities, will allow more flexibility in the refinancing of the Eurobond, which we aim to complete by the end of 2020.
I see rns they have just paid £44m of £84mil maturing now in two bonds. Has the 2nd one been extended? I assume that Repayment was from cash held (which was £217m)
The 400m maturing next April I’d agree its a fair assumption they will do a similar thing , pay off a lump and extend the rest subject to agreement.
They currently pay interest on the bond. I would expect the bond will be renewed prior to settlement date. Not sure what conditions / terms are attached. You would have to trawl through the RNSs
Sorry postman at door, meant to edit Third line, and I think these loan businesses could do well in a recession.
I have been researching this today with a view to buying. Not looking to deramp or get a cheap entry etc. Just trying to decide if its for me, i am already in NSF which is the same area of business And i think .. There are obviously covid headwinds here as There are for all companies. I’m not greatly concerned by that, Its obvious too That a couple of ii,s are selling Down - but that wont last and again It is happening across many sectors during covid-19..
Its the bonds due in 11 months that i need to know more about - can someone please explain in simple terms how this works as its fair old amount and may affect my decision to invest.
“Bond payable April 2021 (c €400m), they have issued a prospectus for €1Bn“
The MDs have been buying in quantity. Sort of tells its own story. Accounts look good with ample provision and they have also put in place alternative collection strategies; collections effectiveness is expected to be at a similar level in May with improvements anticipated thereafter. Nobrainer at theses levels ...
So there are now 2 different sellers, interesting, hopefully they are just mobilising cash and not selling their whole holdings
no better investment trade than one that ticks up haha
Laughing. I'm happy just to sit here & watch the price tick up.
Welcome to the website Wickerley I see today is your first post. Good luck
Goodness me no. Just £2K in the game (at 38p). I posted because I saw some "frothy" comments from others when looking at the current share price v last years accounts. The April 30th trading statement really ought to be read before monies are invested (68p > 32p within 5 weeks)
Joined today your not a shorter by any chance ?
I see an opportunity here.
I sound ramper sorry i don`t mean to
I ought to have been clearer. By "Government" I did not mean the UK. Poland, Hungary & Czech Republic are their main business areas. Two of which have implemented the restrictions I outlined in my earlier post. The IPF model assumes a 25-30% default rate on all lending, which is fine when you are charging base + 80% interest. However at +5%, their model fails.
Wickersley
I Disagree as most of there business is done outside of the uk.
There is your TR1! 10M dump yesterday must be them out now?!
I believe there is a short on this share too. I am a holder of this stock so I’m watching with interest.