RE: Dilution, Debt, Delay18 Jun 2020 17:40
Why is everyone going on about why didn't they use their own cash etc...
I've just borrowed Β£66 million at 2.25% over 10 years as the borrower wants the yield
If that is the case why use your own money.
As far as dilution is concerned, if your buying at least 15 years earnings of probably Β£25million +
per year for a 5% dilution, please let me know another Company that is doing that
If you borrow at that rate and keep on obtaining cash to pay the interest as well as the seller paying
for the set up plus 50% plus interest, let me know of another Company that get's deals like that.
If JLP had Β£100million in the bank then I would agree that they should put the monies to good use
But they need steady cash reserve just in case