Firering Strategic Minerals: From explorer to producer. Watch the video here.
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The Q1 results outline how well this company is positioned for a (hopeful) 2nd hslf of the year recovery.
We have to take our hats off to RF for the joint venture with Carlsberg, what a masterstroke that was!
Happy indeed with the business, despite the current circumstances beyond its control.
Is the RNS a quick response to MAB's proposed fund raise, and too pacify the market??
Predictions on the impact on SP?
I also think that too Fairdealer.
Snippet: "As a consequence of our having significant liquidity in our financing arrangements, the absence of any near-term refinancing requirements, and in the expectation that the outlook for the second half-year is much more positive, we remain confident in our ability to navigate the current difficult environment."
That to me screams out that they're distancing themselves away from any RI which may bring much relief. However they still have a 12-16m monthly burn albiet 50% less than M&B that is still some considerable ongoing burn. This week the SP has held strong. Having totally lost my way in knowing what the actually day is I bid everyone a good 8th day of the New Year.
For me the only real niggle here are securitisation Bondholders who’ve only given waivers through to April 2021. Let’s hope MARS can get their ongoing support without pain ! Until I see clarity on that I’ll wait on the sideline.
oxygen that is correct. HSBC have undertaken to allow waivers until April and have made it clear NO further waivers will be considered. They (HSBC) have agreed to transfer Loans to BNP Paribas in Q4. The terms BNP have agreed in taking over loans are very rigid ( there will be No Waivers).
It is possible as trading conditions are outside of the company, an RI may be forced by lenders.
BP and all that.
AIMO
Hopefully the shorters won't come and ruin this rise
Now that its broken 77p I think it could go back briefly to a decent pre-covid level of 90p very soon...
fairdealer
That was indeed what we concluded after the relevant announcement, so for RF to suggest that all in the (marston's beer) garden is rosy could be viewed as a little disingenuous ?
If so this will come back to haunt him, but it could also indicate the type of pressure that he is under, neither options are ideal, to be fair.
There is, of course, the issue of how much the final brewery payment will be which is firmly geared to performance, I recall ?
Carlsberg did not get to where they now are by being philanthropists.
So BP it must be, imo
Now up to about 80p. It has been a great rise since my last purchase at about 29p back in May.
Hopefully a lot further to go once Covid 19 gets under control.
been a great day, price rose alot faster than I thought, would have expected this more towards March time
Looks as if its correcting big time, everyone is getting a feel for how strongly MARS will emerge I think
I am out today, but given how the sells flew through, wouldn't surprise me if something is happening, or about to auction to the upside
barchid
Not sure how RF can claim at this point in time the final payment will be £20m. The payment is based on a basket of company's, as I recall including MAB and WTB and others. The calculation to made in September. Maybe he has a crystal ball??
At least the SP is moving in the right direction, one wonders why?
the price is doing very well, but lets be realistic, more than likely there might be a pull back to the mid 70's next week while profit takers jump and new platform consolidated
Fairdealer - you should note that the novation between HSBC and BNP Paribas was not connected to the bonds, but the hedging instruments - separate agreements - used to hedge interest rate rises:
''We hereby give notice in accordance with Condition 17 of the Notes that the swap transaction in respect of the Class A2, Class A3 and Class A4 Notes under the Interest Rate Swap Agreement between the Issuer and HSBC Bank plc ("HSBC") as Swap Counterparty dated as of 9 August 2005 (as amended and restated on or about 27 March 2019, the "HSBC Swap Agreement") has been transferred from HSBC to BNP Paribas (as the new Swap Counterparty) by way of a swap novation.''
The swaps would not be secured on pub assets - the bonds are - and any waiver or amendment requests would continue to be dealt with between bondholders and the company, as before.
Expecting a high open next week regardless
Bberman, thanks for the correction. Again correct me if wrong, the approved waivers will not be extended beyond April?
Are you connected to Marstons?.
In the absence of a reply from Bberman, does anyone know where information on the swaps referred can be found?
Have researched the company's website and cannot locate. Any ideas?
YoYoMa agree the speed the RNS was released after M&B 's warning was swift even for Marstons.
fairdealer
It would indeed be helpful to know the position on the swaps, but until any further elucidation from our one time poster I guess we have to realise that your reading of the relevant rns etc are accurate until proven otherwise, it certainly reads that way to me from what we know from the accounts.
Which leaves us in a "hurry up & wait" position to see the next set of accounts. With the stated current cash burn a long lockdown does not augur well & whilst I agree with YoYoMa as to the importance of hospitality to our economy, we are dealing here with politicians & the gloomsters from SAGE, who are less than predictable.
Daave, on the other hand, said that level 4 was better for pubs than level 3 due to the certainty and governmental assistance.
In short, we seem to be in the dark.
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
What a fantastic bit of research
Bberman
Thanks for the clarification,I'll read through that link myself this evening when I have some time.
Regards
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.
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 !