Member Info for devonplay

I suppose that arguement might be illustarted by PMO1. I understand most of that is in Institutional hands, and is trading round a small premium to the cash offer.

I've seen them calculate a range of figures, many traded the bonds so par has never been their buying cost. Most are happy to take the cash offer, as their buying cost plus accrued interest still offers a decent return.
They don't want to be stuck holding equity. When it's value may be questionable. I have seem cals based the mix of 90%, giving a future value to the equity, but there remains great concern about what discount the market might apply. That, I guess, is one of the reasons the Company talks about an average return of 75%. - there could be a discount refected in the share price v assets (PE val.)

"Devon. I tried - found no reason. Sorry"
LOL

If it's any interset Jennifer, most of the chat rooms I belong to which attract debt investors believe the "cash" offer will be over subscribed. They believe holding the debt & equity mix will be to risky for their appetite. Not sure how representative that will be.

Devon, why should I give a flying F about all that lot?
- only you can answer that....

LOL Let him trade 1p swings...
Yeah hahahah
I have a greater taste for risk, start-up are my main concern. I have to decide if I'm taking up pre-emption later this month in one that's just raised at £50m - no revenue, loss making etc - £50m or as I think of it 1/3 of the value of PM0, mind it's given me so far over 1000% return in 5years LOL Maybe "I am Trader" too

"I’m not interested in survival."
No, but the employees, creditors, pension funds, pensioners are.....

"5% of what?"
Survival

"Im delighted to be keeping my 250000 shares."
Can you be confident of that at this point? As we know very little about the structure of the acquirer or how many debt holders with take up equity as part of their rights? The max. permitted.
I'm not sure, but I think that's all up in the air as how they issue the revised cap structure, no of shares etc.

Creditors, who the companies’ spokesmen said will get between 70 and 80 cents on each dollar owed, will also own shares in the new group. Overall, Premier stakeholders will own not more than 23%.
Reuters

LOL yeah, you've got my OK.

But SK baby;
You were going to put another £100k down this time last week!

Sorry, it's the other way round:
The combina;on of these provisions would result in a total recovery of approximately 75 cents on the dollar (on average across Exis;ng Creditors) in cash at comple;on of the Transac;on for those elec;ng for the par;al cash alterna;ve. For those Exis;ng Creditors who elect to take new shares they would have a base cash recovery of approximately 61 cents on the dollar (on average across Exis;ng Creditors) with the addi;onal poten;al value of those shares based on the future valua;on of the Combined Group.

Sorry, it's the other way round:
The combina;on of these provisions would result in a total recovery of approximately 75 cents on the dollar (on average across Exis;ng Creditors) in cash at comple;on of the Transac;on for those elec;ng for the par;al cash alterna;ve. For those Exis;ng Creditors who elect to take new shares they would have a base cash recovery of approximately 61 cents on the dollar (on average across Exis;ng Creditors) with the addi;onal poten;al value of those shares based on the future valua;on of the Combined Group.

"Am I correct, that the 2021 retail bonds are included in the debt repaid?"
That's the way I understand it. You have a choice of 61% cash or 75% cash & equity.

"Devon, of course the creditors will agree - its just a formality"
Yeah, but you are still investing in uncertaintity to a deal is done, it's roughtly the same 45% of creditor who approved the original deal on the face of it, that suggests they want any deal. They just want out. If it does go ahead they'll be the first to dump their non-cash repayment, and that will surpress the share price for some time to come. I'm glad I ditched my holding of debt for c75% -what's now being offered to debtt holders for the combined offer cash & equity.

"Devon, of course the creditors will agree - its just a formality"
Yeah, just like the stab agreement, cov test and BP deal, all just a formality.....

"It’s just stating that creditors need to approve deal too. Also says that they’ve received assurances from a lot of the creditors"
Like the stabilisation agreement, this only moves forward if the creditors agree! We've yet to see if they believe there's a better deal then 50% cash and the remainder in new Co. shares.

"Will the new company be publicly listed?"
You would expect so with the reverse takeover I expected. It's one the attraction for debt holders, they get to sell the equity in the market they've just been given via the possible deal. That's going to supress the shareprice once all the survival relief is out of the way. This deal saved the debt holders, they are going to want to deleverage again after they get they cash payment, by selling equity, whatever Evening Standard say about value.

Hi Mr Solo, they publish their Fact sheet and there's often a comment about what they've been buying. I think one of the last I saw was a recent purchase of Punch Taverns, Punch Taverns 7.75% 2025. When I last bough it, it's notes, in August the yield was over 10%. What is less easy to see if the small additional purches that Franco makes. For example, one of the bonds he's keen on is Matalan. I bought some this last week with a YTM of 30%. If you look on NCYF site, Sitting Pretty https://ncim.co.uk/sitting-pretty/ they talk about Matalan in detail. So, it may not just be the case that he's swapping high coupons for lower, but he may also add running yield and yield to maturity to the portfolio. There's still plenty of options around. Again, by example, the August Fact Sheet "The only transactions during the month was to roll the Navigator Holdings 7 3/4% 2021 bond into the replacement bond of 8% with a date of 10th September 2025." Coupons aren't all going in the same direction. Along the way he's also going to be picking up consent payment, and bonds that are being called for maturity that will be paying him accumulated coupons and sometimes premiums to par! I have one been matured at the moment, that I bought at sub par, paying 101% of par plus consent payment 0.5% and accumualted coupon.
Just for fun, myself managed portfolio has YTM of almost 70% - not that I'm expecting that.
I'm not sure which direction the shre price is going, hence a toe hold purchase and them monthly buy, but I am confident he could build a high yield diversified portfolio with a decent total return - but that does, in my opinion, come with more risk.