Morning Trinityman17 Jun 2019 13:00
Who knows why your post vanished?....Good thing I copied it then.
Quite happy with your criticism btw. Let's forget the possible poor diet eh - kippers I like, but they give me gout - and concentrate on the (suposed, my opinion) issue. Last line:
"Trinityman
Posts: 59
Opinion: No Opinion
Price: 15.20
Kippers Or Craft Beer?
Today 10:32
Any chance of getting the old GK back or can posters expect to get trampled on every time they have the audacity to mention the money?"
Who was that?
The money. Is it there or not?
The deal:
From the St2 deal in totality there is a potential maximum funding provision of $4825m made up of $425m of cash from new equity issue plus a $400m CB. These monies have gone through and are with the co (though the funds from the $400m CB are in escrow). A $500m bond needs to be sold by the co's Lead Arranger JPM by end Oct for the rest of the provision to be confirmed and signed off. That consists of a $2500m credit facility plus, once Sirius issues a further $2500m of bonds, will have an extra liquidity provision of $1000m.
Only the $425m of equity issue is available as spending cash until this first bond is sold. At present cash burn that would only last around 6-9 months. Cash burn is accelerating.
So the 'money' is not there. Next Q: How likely is to be?
For a reasoned answer (ie not wailing about not knowing about it, on the forum [this attitude the 'new me' then?]) I ask people look to the global junk bond market and discover: how this market works IRO new issue, how much gets issued daily, how much is out there outstanding, what rates do bonds it go at, who decides that, what offers fail, why and in what circumstances, etc? Then make a judgment on whether this first Sirius $500m bond will go... or not.
Another maybe useful judgment is to decide what presently is keeping this sp where it is? Again maybe something that won't get satisfactorily answered on a forum.
Understandable that past pain creates present worry. But a rational approach looks to what's ahead.
Sorry if I come over as harsh.
ATB.
GK.
Sign In
Follow the stocks
