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@Lee: Others have better views and maybe more tools (Bloomberg etc..?) at their disposal than me so thanks for all your posts here. Reading CHRI55's comment here I was not convinced by his statement on kitchen sinking - I honestly think kitchen sink exercises on Micro Focus are a thing of the past. Starting last year but especially now where we (hopefully) leave Covid more and more in the rear view management should be able to steer this big ship around - I am a patient holder and will collect the dividends for the time being. I guess my plea is for civil interactions - life is short anyway and being a blog where people have a go at each other is not so pleasant. Peace all - as John Lennon would have said:)
Henry...Chriss is a short pretending to be long. He does the same on NEX and stagecoach and gets the same grief as people see through him.
He just makes crap up. Look at his recent posts.
1 on debt increasing even though its inline with reported debt as per my earlier Post. The next post is about more exceptional costs because the loan increased and also the kitchen sink comments again. I'm up for debate based on good info or facts not some twisted crap from an idiot poster. He was called clemoc here originally hence the comments after 2 years of same ****
@MarkBellUK: Just to be clear: I am not CHRI55. I hold significant Micro Focus shares and so am following the debate here and elsewhere with interest. I have never posted until today. Here the background to my first ever post: I read CHRI55's previous post about debt increasing post the latest B note RNS. As CHRI55 had not given background I decided to do some research by looking at the RNS where the existing B note was mentioned and posted it here to sollicit the views of others. Mark - I have read past contributions from yourself and liked them (as I sincerely want Micro Focus to succeed...for obvious reasons) but as adults we should respect/welcome views others than ours. Only having yes sayers here can lead to group think. And as someone who comes originally from continental Europe one of the qualities that I like about this country are good honest debates (even if the woke brigade is doing its best to stifle this). Best wishes, Henry
Trust me - the guy is a fool so i dont feel bad for having a go at him. He been doing this crap for years - under different names so he can get lost. he just makes things up to suit his short narrative.
Here check the RNS from July with the 6 month results - the last value of the loans was over 1,5 Billion so if they have loaned 1,5 billion now.... doesn't it make sense?
713.5 - Term loan B 359.5 - Term loan B3 637. - Term loan B4
I think CHRI55 is referring to this when he states that debt has gone up: RNS Number : 4363O Micro Focus International plc 29 May 2020 Micro Focus International plc ("Micro Focus") announces that it has successfully priced and allocated a Euro 600 million and a USD 650 million Senior Secured Term Loan B (together, the "Facilities"), increased from Euro 400 million and USD 400 million respectively at launch in response to strong investor demand. The new 5-year Facilities, along with $150 million of existing cash reserves, will be used by Micro Focus to fully refinance its existing Senior Secured Term Loan B due November 2021 and pay associated fees and expenses (the "Transaction"). Final pricing for the new 5-year Facilities is 4.50% above EURIBOR (subject to a 0.0% floor) at an original issue discount of 3.0% on the Euro Tranche, and 4.25% above LIBOR (subject to a 1.0% floor) at an original issue discount of 2.5% on the US Dollar denominated tranche. Following the completion of the Transaction, the average maturity of Micro Focus's debt capital structure has been extended from 3.2 years to 4.2 years, with the next tranche of Term loans due for repayment in June 2024. The transaction was led by JP Morgan in conjunction with Barclays, HSBC, Natwest, Bank of America and Goldman Sachs. Lazard acted as the company's advisers. Stephen Murdoch (Chief Executive Officer) said: "This very positive outcome demonstrates the strength of the Micro Focus proposition and the cash generative qualities of our recurring revenue model. This is an important step as we work to deliver on the operational improvements we set out in our Strategic and Operational Review in February."
I am a holder and believe in Micro Focus' receovery but even so it seems to me that the volume of the Secured Term Loan B has gone up - but am also aware that the sale of one of the Micro Focus' arms will reduce debt and that refinancing terms are almost unchanged. One last thing and that should apply to all of us here: Let's not get personal. It should be OK to hold and express different views - as long as these are genuinely held and not posted in the (vain) hope to influence the price of Micro Focus.
I see this refinancing as really positive and on balance there must have been good reason to progress it. HOWEVER, whilst I appreciate there are up front costs, it would have been nice to know in the RNS that perhaps it had saved money in the long run, which again would have helped the sp. Having said that, there are also commercial sensitivities to consider in publishing such date from the company's and the bank's perspective.
The deal was done when the Sp was around 330 hence the 30+% rise for ‘no apparent reason’ since. Kicked the debt down the line(as I predicted and was vilified for by certain posters) and high inflation will effectively reduce that debt substantially.
Chris, How do you know its at worse terms than before? 4% is hardly expensive money in corporate financing. 3.6 years is now the average maturity from 2.7 years. No doubt they will do another of these shortly and push the other 1.5bln out 5 years. They have a good credit rating and generate lots of cash on a recurring revenue model. Other then the costs to refinance i dont see this as a bad thing. They are obviously giving themselves plenty of time to organise shrinking of the debt.
Does anybody know of a online resource that will list what ETFs include MCRO/MFGP within their holding?
Someone mentioned Tuesday's rise being almost completely reversed, but if you overly the Nasdaq on MCRO's chart you can see the sector wide correlation of Tech pulling it down (regardless of news coming out of Micro or poxy broker notes). It's exactly the same on the 4th - 10th Jan too.
Be interested to see which ETFs it is held in and how many - probably explain a lot of the odd movements?