The latest Investing Matters Podcast with Jean Roche, Co-Manager of Schroder UK Mid Cap Investment Trust has just been released. Listen here.
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Cannot se us getting back to 110 until the div is restored. The SP will linger around the NAV until some serious news emerges or some kind of sell-off of redundant pubs ( the number must be growing by the day). Clearly Tim Martin is getting worried.
Maybe Mars getting rid of some deadwood now they've the 156 pubs in Wales plus if they got 200m that ties in nicely with the next repayment due soon. Looking at JDW 5pm RNS it seems they're raising 93m in shares perhaps RF will produce another RNS. Still the papers saying the sweetspot for this SP is 110-120p
Is this bad news? I'm a bit of a newbie
EFlammis
I think it could be the opposite as apparently the ex Greene King boss, Anand, has raised £200m in order to buy up small chains of pubs. Maybe the odd Mars property but not a large block.
This was in CityAM this afternoon.
As ever with Mars it is usually better to travel than to arrive.
Perhaps CKA group, the ones who bought Greene King.
Looks to be at the top of its range at the moment, should come down again until pubs reopen mid Feb (if they do)
Sorry I put the name of the wrong court
Apologies the Ruling is Supreme Court and not High Court, so excellent news for all Policy Holders
Insurance Companies will Appeal to the Supreme Court. They are not going to pay up easily, could take some considerable time before the outcome is finally determined
Has everyone seen the new High Court ruling for business interruption claims? Surely this should be a positive thing for the SP
Are we still expecting a report on the 27th?
Joe is right a load of bunkum.. If the SP were half what it is now , there would be Vultures circling.
Noted JoeKenny!
Pinch of salt
fairdealer20 ! thank you for replying, there was not any clear mention of a potential bidder, it was very vague.
Just speculation that they are in the sights of someone. It was published a week or so ago I believe. What are your thoughts ?
Investor, is it an Asset-stripper Betaville are pondering as a potential bidder??
If this is true surely this is not good for the so?
Hello Marston Investors !
I recently come across an article on a website BetaVille suggesting Marstons is in the firing line as an acquisition target. Would make sense considering where they are priced, however in this current sector, who would be buying into it? Please share your thoughts. Thanks !
fairdealer & Bberman
Thanks for your summations here, I did start looking at the investegate piece last night but thought it differed from the trustnet one though was not quite sure how.
Both trustnet & investegate are normally reliable purveyors of information but it is always the arcane issues which are the most difficult, thus I am inclined to go with trustnet as if BNP keep taking some debt on they are not a charity & there has to be something in it for them, in very simplistic terms.
Better to be cautious on this as the sums involved are highly significant to Mars ongoing structure, these different ways of borrowing money often become a millstone as all looks great until something unexpected happens, like zero interest rates !
On 30th November YoYoMa discovered and posted a link to Trustnet. The link sets out in a better to read format than the link posted yesterday. Those who read the Trustnet link generally agreed BNP Paribas are taking over £819m fixed and floating notes. The Interest swap agreement between the Issuer ( Marstons) and HSBC are transferred to BNBP by way of a swap novation. Unless others have another view a "swap novation" is the transfer of a loan facilty from one provider to another.
The Post-Novation agreement between the Issuer and BNBP contains certain provisions which are not in the HSBC agreement... read items (i) (ii) etc. Item (ii) states the Issuer may not agree to or make any modification, consent, waiver..............."
The agreement goes on to say the parties will use reasonable endeavours to agree replacement rate before the 31st December 2021. If agreement is not reached the FCA or any other relevant Regulator will recommend a replacement rate.
Suggest interested investors read and form their own opinions
Read the link from YoYoMa's original post of 30th November, which is much easier to understand.
Seems to be a good resistance at this level, my thinking is that people are buying in at 80p in the hope that this SP will increase when pubs reopen (including myself)... MARS may be losing money but they have a strong balance sheet and are 'set to emerge strongly' (stated in their announcement) as one of the survivors of the pandemic.
IMO I can't see much travel this year... more people will be staycationing again which will mean more money for UK pubs/restaurants
How long can this SP be sustained whilst pubs remain closed to at least end of March??
Bberman
Thanks for the clarification,I'll read through that link myself this evening when I have some time.
Regards
What a fantastic bit of research
https://www.investegate.co.uk/marston--39-s-issuer-plc--48vl-/rns/swap-novation-notice/202011301700289998G/
The point is this: if you look at the various notices on waivers and amendments, they are between the company and bondholders, and they relate to reporting covenants. This has been done twice, with pretty much 100% support from bondholders. That is probably not surprising, because a) as the company reported in its recent update, it has continued to service the debt, and b) there is precedence - M&B, Stonegate, Punch and Greene King will all have been reaching similar agreements. It is evident from reading the announcement that while there is a restriction on waivers which could adversely affect payments due to the swap counterparty, there is only a notification requirement on other waivers (i.e. which do not adversely affect repayment). As it is clear from previous announcements that waivers affect reporting covenants and not payment; that swap counterparties do not hold security over the assets (bondholders do); and that the company has indicated that it has liquidity to service the debt, it should be clear that this announcement does not affect their ability to agree similar waivers and amendments in future to the ones it has already agreed.
Bberman