Member Info for devonplay

Increased my position in the debt by 20% after reading that article in the Mail on Sunday.

Thanks for sharing the article. Duddy did a fine job with his last turn-around, lets hope he has the same positive outcome again.

Thanks for the Tip.

Please keep the good news coming. Now just waitingto see if we get an interest payment next month.

no much chat here, any views on the issue of the 7.75% notes?

"this seems laughable." Only to you Pearls, we've tried to explain it as simply as possible. The events speak for themselves now. You've lost your equity and the court case is very unlikely. but if it gives you some comfort, so be it.
Daniel sounds like he works in finance or City. He sounds more for experienced around pure CF than me. For myself I have 30 years of investing experience, decades as a Company Director and periods working in the City in Private Equity. I'm not trying to mislead you, but try to explain what I thought happened and why. To help.
I don't intend to try and explain events again.Good luck with your future investments.
I'm going tp carry on hoping that my investment in Debenhams comes good, there's no guarantee, but at least I'm only invetsing money that I've mad from shortening the equity.....and importantly I can afford to loose.

Over-subscribed with £1b applied for wasn't it?

Yes, according to Reuters.

"A source close to the deal said there had been more than $1 billion of interest in the funding round. "

"The total amount was hiked from the 350 million pounds originally sought due to the high quality order book received, the spokeswoman added."

https://www.reuters.com/article/metro-bank-capital/update-4-uks-metro-bank-completes-vital-capital-raise-to-patch-up-finances-idUSL5N22S6HE?feedType=RSS&feedName=rbssFinancialServicesAndRealEstateNews

"Result of Placing

Following strong demand from both existing and new shareholders, Metro Bank PLC ("Metro Bank" or the "Company") is pleased to announce that it has successfully raised gross proceeds of approximately £375 million through its placing launched yesterday, 16 May 2019 (the "Placing"), upsizing from an initial target of £350 million. The Placing Price of 500 pence per Placing Share represents a 5.2% discount to the preceding five day average closing price as at 16 May 2019(1)."

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MTRO/14077676.html

"as a number of the institutional investors have been frankly coerced into supporting this "

What is your source for that information?

https://www.cnbc.com/2019/05/16/reuters-america-update-2-uks-metro-bank-launches-cut-price-share-placing-to-patch-up-finances.html

"Existing investors are supportive of the deal and there have been strong indications that they will buy into the placement," a source close to the deal said.

"Metro Bank had the confidence to launch the book-build because investors agreed to take part," the source added.

https://www.cnbc.com/2019/05/16/reuters-america-update-2-uks-metro-bank-launches-cut-price-share-placing-to-patch-up-finances.html

"Existing investors are supportive of the deal and there have been strong indications that they will buy into the placement," a source close to the deal said.

"Metro Bank had the confidence to launch the book-build because investors agreed to take part," the source added.

My apologies if any on here are taking things a bit badly at the moment, but I would like an answer - if anyone knows - please provide it.

I doubt they will be taking it badly, it looks quite positive overall, but in answer to your question you can't easilty make a comparison with any of the big banks. Do you mean the challenger banks? One thing I can say on that note, as a shareholder of a few unlisted ones: at least MTRO make a small profit and for the moment, or should I say in the past, they've been able to tap the bond maket on better rates.

Unless the legislation has changed recently;

Directors making misleading statements, for example in a Prospectus for an IPO, can face upto 7 years imprisoment and personal libilities.

This include forward look statements, false promise or forecasts, dishonestly conceal any material facts in a statement etc, etc.

It's why everything Debenhams Directors would have done would have gone through a barrage of corporate lawyers.

"Do ou expect anything formally before the Supreme Court have made their judgement"

Yes, because if it's a clear case of misleading, then it could be market abuse and that doesnt require any change in legislation. Its already part of the Criminal Justice Act and I expect the Financial Services Act.

if the Directors, Company. Administrators and Lenders are invloved in a fraud, as some have suggested here, then why would you wait. Them being found guilty under one of the existing pieces of legislations would only strenghten a case seeking compensation.

Why wait for soemthing that might not make it into law?

Yeah, you are right. It's mothing new. It's been a long day.

if you are in here, am I right in thinking "MREL-eligible securities" are unsecured debt, rather than a securitization?

My pleasure. Part that caught my attention:

"In order to meet transitional MREL requirements by 1 January 2020, Metro Bank plans to issue up to £500 million of MREL-eligible securities in 2019, as well as undertake further MREL issuances ahead of 1 January 2022."

I need to think MREL-eligible securities, I seem to remember banks issuing those post 2009.

Yeah, this game cant test the grey matter.

https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/MTRO/14077413.html

It's there.

A few days old, but something to think on.

https://www.reuters.com/article/metrobank-bonds-idUSL5N22L429

If the rights issue is underway, the next thing will to be worrying about raising more debt next year. I can't imagine they'll get another debt issue away in the near future, so all eyes down for a securitization!

What fun!

11.20 am in NY, so no reason why they should'nt update the market if it's true.

Unless they don't want to give our American cousins gut rot before lunch.

and still no RNS.....

"any concrete update from MA or SPD with regards to a court case"

there doesn't appear to be anything.

No RNS from SPD, nothing from the Administrator, Lucid's (Issuer the for bond) or comment via the NewCo.

Nothing on the LSE or any exchanges the bonds are listed.

Nothing in the financial press confirming litigation (as far I can tell).

It's pure speculation.

It's interesting you mention the next capital raise. One of the reasons I was willing to take on the bonds was their ability to raise capital in the past.

That and as i was under exposed to financials. The about 9% ytm is OK.

I'm sure there's still plenty of long opportunit. It's certainly interesting seeing response, I can't work out if that's cultural, ego or they just feel there's nothing to worry about. It's certainly the great unknown. LOL

But, as I mention I could see it going either way, so like Peter Lynch I'm going to work on the basis of knowing what I'm buying and why. For the moment, long or short I'd want more certaintity.

"I'm on sidelines at moment"

I have to say I am as well. I own some of the bonds, there's not that same lever of volatility.

I just can't at the moment form an opionion that gives me enough confidence to make anything more than a quick turner around trade. That's really not going to do it for me. It's not my style to go after a quick 10%.

For the shorts, I guess they can sit on the sidelines and wait developments, afterall they had a long journey down already.

I could quite easily see Metro getting away a placing at a price higher price, but I could also see them having a last minute rush rights....and that might be painful.

Good luck anyone trading it, there's not enough certainty on the table for me to jump in yet.

Overall it's fascinating to see how it unwinds.I'm going to stick with rule #1