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Back on filter. Spite I can handle, but you are sooooo boring.
Was in kod for a day lol. AEG hit 32p yet? Bye lol
make your mind up, according to you all my posts are negative so what mask is that?? lol "I make enough money trading"!!! you just buy what the people you ride have bought, that's all you do, have you even ever bought a share off your own bat!! I doubt it, how are those sml and kod shares going??
And it just shows when the mask slips. Banter on a bb turns to vitriolic spite. You just have to show pity.
don't make it up fella, where in my post does it say others??
Lol. He's great isn't he?! Lucky for me I make enough trading to afford red or black punts on the side. Him, he couldn't afford a mars bar. #winning lol
*advice
What a horrible person you are to want them and others to loose money. No one wants your "advise". You are a troll
karma that's what it is.
Do you think we will come out of suspension ?. Basically what your saying is the main lender is not the first to be repaid in a asset fire sale ,therefore it could be in his interest to keep the company solvent . There is also chance of a third party entered at last minute . Main market ,& significant assets help here imho . Of course it may go under Monday ,hopefully another pleasant twist to come .
"On 1 May 2014 the Board announced that it had entered into a new senior loan facility (the "New Loan") with Blackstone Real Estate Debt Strategies ("BREDS", or the "Mezzanine Lender"), an affiliate of the Blackstone Group LP ("Blackstone"). On 6th August 2014 the Board announced that the New Loan was refinanced with an additional €100 million of senior debt provided by Bank of America Merrill Lynch International Limited ("BAML") while BREDS retained the remaining balance as a mezzanine facility." "The new loan facilities entered into during the financial year with BAML and BREDS have a flexible structure that will enable the Group to reduce its borrowing costs from an interest rate margin of 770 bps above 3M EURIBOR to 470bps over 3M EURIBOR (the "Step-Down" event) in the event that the Group succeeds in paying down enough of the mezzanine facility that its outstanding BREDS indebtedness is reduced to €35m or below, among other conditions." I read that as saying they are pushing thru with asset sales to benefit BREDS, and thus there is the risk that if they are too aggressive in the sales (and accept lowball prices) then it could potentially start to eat into BAML. Of course, for that to happened BREDS would first face a wipeout of that €35m ...
They then passed on the senior debt to BAML though. BREDS just maintain the mezzanine debt. Under normal circumstances (windup) BAML get the first €100m and then BREDS get the next chunk. If there is a shortfall, it lands on BREDS desk. However, as you say the refinancing deal has a quirk whereby this targeted disposal programme repays BREDS, not BAML. Let's do an extreme example. Let's say BREDS take control and force thru a rapid firesale of the entire €200m p/f. And that it only generates €150m in revenue. Do BREDS take their agreed €85m first (leaving insufficient to repay BAML) in this circumstance? In which case BAML are facing a loss they may not have expected as a senior lender. I need to go back and look in more detail at the terms of this refinancing and whether its possible BREDS might be able to force an asset sale that then would potentially trigger a loss for BAML. It's all part of working out who might be opposing BREDS and any forced windup.
Perhaps I don't fully understand all this which is entirely possible, but I don't understand what you mean by BREDS being the junior lender? Haven't they provided the €222 million credit facility agreement which is made up of €100mil of senior debt and €122mil of mezzanine debt? Under the refinancing agreement, it was agreed there would be targeted asset disposals that would be applied to the repayment of the mezzanine debt.
We don't know. 'control' is not the same as ownership. They are a junior lender so don't have rights over the assets, but rather they could take control of the company and run it so as to force sales and get their debt re-paid. That's a helluva lot of work and they'd need to be sure that if they ran it they could do a better job that the current investment manager. [No reason to think they could] Clause a) basically allows BREDS to force sales if IERE aren't doing them - however there is already an agreed asset disposal plan in action so seems a moot point to push on a), since that's already in swing. Also, pushing TOO hard on this means you get firesales and poor prices for the sales - if you're known as a distressed seller your bargaining position is weaker and you are tempted to accept lowball offers. If breds push for faster sales then the only people they will hurt are themselves. Oh hang on, I've just realised something quite important about the order of capital payback that's taking place (#facepalm) ...
If further Standstills are not granted, BREDS would have the following options: a) Enforce their security over the Group, thereby taking effective control of the Group and possibly initiating a sale of the assets. It is likely that this course of action would result in a significant reduction in the proceeds received from the accelerated sale of the Group's property assets and consequently the amount of equity returnable to shareholders. b) The Mezzanine Facility Agreement includes a provision for a Default Rate of interest, which can be applied in the event of such a breach, at the discretion of the Mezzanine Lender. This would mean (at current debt levels) an additional 538 basis points ("bps") of interest on top of the current margin of 770 bps. In the event that the Group is unable to support this additional interest cost, a mechanism exists whereby it is possible that the Mezzanine Lender may (but is not obliged to) allow unpaid interest to be treated as an accruing liability on the balance sheet of the Group, thereby reducing the Net Asset Value. So is it a case of 'option a' being the preferred route for BREDS?
Well it's not going up soon since it's not trading :) You have to remember what you have here. Massive gearing: ~ €200m of assets and a tad shy of €200m of debt. That makes it all about the balance. Debt more than assets, the bust. But it works in the other direction as well. Provided the rental income meets the opex (e.g. interest) then look at the effect of what would happen if the value of the assets grew - not unreasonable if you look at the trajectory of German commercial real estate at the moment. It's been beaten down and is now ticking up nicely. Let's say it grows 20% over the next couple of years. You now have €240m assets and €200m debt. You've gone from net zero assets to net €40m assets. Current the SP priced IERE as having next ~ zero assets (MCap was << £1m). If it grew to have a MCap of €20m so as to be a 50% discount to NAV then you'd be talking of a SP of around 5p. Because of this balance between two very very big numbers it's not really possible for it to 'just survive' - it will go bust OR it will grow back into being stable, in which case it will have a MCap measured in tens of £m. Give me a lever and I will move the world...
I think the announcement pending mentioned in the rns from the FCA was made in the second rns were IERE stated they had requested a suspension and it was unlikely there would be any value left. Think they were pushed into suspension by FCA. Whether they have been trading since the irst rns stating the same thing to let big holders out or not, dunno, whether the extensions are to let them complete a sale of entire p/f at a price that covers all debt and that deal was being signed late Friday dunno. Guess we will find out but like most I have written of my squids.
First time you are right
~5years in the markets. Numerous suspensions, delistings and other blablabla, but never seen anything like this one... Cheers
Wet myself should rns drop here next week back trading deal done all the billy big shots and know it alls eating humble pie ha ha
There a outside chance new party appeared at 11 the hour ,grab assets on cheap and main market listing ?? Temp suspension,pending announcement. All the huge risers come after a suspension chance this could follow suit . Until words like "delist" and "cancellation of trading" appear we are still in play . If you where sensible and didn't put much in should still be relaxed about this situation .
As long as there's a small chance, i still have hope.
I'll second that - well done Okenia - some good posts there. As I have stated before, it is not over (in my mind at least) until we see the official de-list RNS. There is still a small chance here as has been outlined already, but just a small chance by the look of it. Most if not all here invested money they can afford to lose, so not a huge deal if it is actually over, but until we get official notification there is still a glimmer of hope. Hope something comes out of this but if not, then no big deal - time to move on. See what Monday brings ?
Even if this company survived from going bust!.. It'll be years before it recovers and sells the rest of the property it has.. The shareprice is pretty much gonna to stay nothing for a good year at least....
As Nuke999 says, I'm unravelling this. The more we can learn from this the better - since there may be similar situations in the future. I certainly know more about REITs and mezzanine debt than I did a week or so ago. Mentally I expected I wrote this off from day one. The overwhelming chance was that it would wipe out ordinary shareholders. I'll follow this to the bitter end so I get something from it. And hey, it may still surprise us. Remember, there are a lot of big shareholders sitting on big losses who won't be pleased at BREDS swimming in and making shark-like profits. One thing - it's suspended not delisted, so they still continue the business and still have to issue RNSs. I expect at least one RNS next week regarding the standstill letter, as an extension or not is material. And I have a sneaking suspicion we'll see one or two more.