Member Info for hghotshot

Nth,

I may be able to help on this.

As of yesterday, there were 228 days to the maturity date (August 6, 2024). In broad terms, the return will be £100 less purchase price (say £94.50?) = £5.50, plus the two interest payments of £2.25 = £4.50. This is a total of £10.00 for 228 days. This is an annual yield of 16.05%.

What on earth is going on here?

https://www.whafh.com/wolf-haldenstein-adler-freeman-herz-llp-is-investigating-potential-securities-fraud-claims-against-diversified-energy-company-plc-nyse-dec/

Canetoad, you are correct the current yield is 16%. However, I regard this as anomalous due to the market price, in much the same way as the dividend yield is also anomalous due to the share price. I do not believe that the refinancing will be achieved at anything like that rate.

As stated previously, I believe it likely that it will be possible to structure the financing in a way which will attract an interest rate lower than 10%. A replacement of the retail bond on the same terms is not the only option. Terms can be revised, perhaps a floating charge or some form of lien on properties. It may also be possible to use some of the unrestricted cash (there was £26 million at June 2023) to reduce the financing requirement. Also, it is highly likely we will be in a declining interest rate environment in 2024. I remain stoically sanguine.

Canetoad, I regret that I do not share your views, in particular your concern surrounding the retail bond. It is, after all, only £50 million, a small element of the overall debt. I know that it will need to be dealt with and accept that it will cost more than the current £2.25 million each year. Worst case, in my view, is replacement of the full amount of £50 million at 10%, being an additional annual cost of £2.75 million (from August 2024). I do not believe that the 15% you are suggesting is remotely likely, particularly in the now almost certain environment of declining interest rates anticipated in 2024.

If the worst case of additional annual costs of £2.75 million were to happen, this would not be catastrophic in the context of the cash generated by the business. However, there remain many options which would reduce the impact. I believe it will be possible to structure the financing in a way which will attract a significantly lower interest rate than 10%, perhaps a floating charge or some form of lien on properties. It may also be possible to use some of the unrestricted cash (there was £26 million at June 2023) to reduce the financing requirement. I remain stoically sanguine.

Fully agree. This is a great opportunity for DEC to emphasise its green credentials and to reinforce its characterisation as a solution to the problem instead of being a cause of the problem. There may be further benefits in being able to acquire additional mature acreage at advantageous prices from companies that do not have the necessary remediation and capping capabilities.

What's the answer, clever-dick?

Registration on the NYSE to become effective "immediately" according to SEC Order dated December 14.

https://www.sec.gov/Archives/edgar/data/1922446/999999999723004768/filename1.pdf

Maybe today?

Jimbob,

I believe you need to look at the accounts more closely.

In broad terms (using IFRS numbers, which I prefer), the situation at June 30, 2023 was:

Net Assets £374m

Number of shares 516m

NAV per share 72.5p

The current share price of 30p is at a discount of 59% to NAV per share.

I believe that this discount factors in the near certainty of several catastrophic events, none of which do I consider likely to happen.

By the way, how do you get from your “Real net asset value £300m” to the “share price of assets is approximately 40p”? What is the “share price of assets”? There are 516 million shares.

Etotheipi, I am with you. It is already (and a lot more) in the price. I am also looking forward to Thursday. This will be a big day (Trading Update) for RGL. I am hopeful that RGL will continue to report boring, relentless cash flow.

Agricore, thanks for this; it is very encouraging.

Thursday will be a big day (Trading Update) for RGL. I am hopeful that the Doom Society and Armageddon Club will suffer major disappointments. Also, it is possible we may receive some news on intentions in relation to the retail bond, although this is most definitely not an imminent concern as it does not expire until August 2024. However, it may be possible to cure some of the obsessive and exaggerated concern surrounding this issue.

GG,

I am a big fan of yours. Sadly, you are sometimes (often, actually) too clever for me and I simply cannot understand what you are saying.

What is " ignorant idiotic literalism" ?

Damofari, I share your views, in particular on the apparent widespread obsessive concern surrounding the retail bond. It is, after all, only £50 million, a small element of the overall debt. I know that it will need to be dealt with and accept that it will cost more than the current £2.25 million. Worst case is replacement of the full amount of £50 million at 10%, being an additional annual cost £2.75 million (from August 2024). This would not be catastrophic in the context of the cash generated by the business. However, there remain many options which would reduce the impact. I believe it will be possible to structure the financing in a way which will attract a significantly lower interest rate, perhaps a floating charge or some form of lien on properties. It may also be possible to use some of the unrestricted cash (there was £26 million at June 2023) to reduce the financing requirement . I remain stoically sanguine.

Please stop polluting this board with your claptrap?

General, thank you; yes now I see.

It is the M7 Regional E-Warehouse REIT, which is delisting from IPSX (which itself will stop trading on December 1). Delisting for the M7 Regional E-Warehouse REIT is relatively simple as it has negligible free float and is owned almost entirely by other M7 entities:

M7 Real Estate Investment Partners VIII, LP 80.8%

M7 Aggregator Fund LP 15.0%

Delisting for RGL would necessarily be a far more complex and problematic proposition requiring shareholder approval with shares widely held. There is a free float of 88% with only two significant shareholders (holding between 5% and 10%). I do not see there to be any significant likelihood of this eventuality.

General, what is M7?

Doc, I agree with you. There is no question of assets being disposed of within a month (i.e. fire sale basis). Any disposals would be undertaken as "orderly transactions" as described in the Notes to the Accounts, and are valued accordingly.

Notes to the Condensed Consolidated Financial Statements

For the six months ended 30 June 2023

The value of the properties has been assessed in accordance with the relevant parts of the current RICS Red

Book. In particular, we have assessed the fair value as referred to in VPS4 item 7 of the RICS Red Book. Under

these provisions, the term “Fair Value” means the definition adopted by the International Accounting

Standards Board (“IASB”) in IFRS 13, namely “The price that would be received to sell an asset, or paid to

transfer a liability in an orderly transaction between market participants at the measurement date”

Inglis spends @£50,000 on shares at 27.8p . An encouraging sign (at last).

We need some reaction (RNS) from the company. I find the absence of Bod and PDMR share purchases rather disturbing.

I have read all your wretched posts.

Please indulge me?

How do you (alone) know that DEC will have to buy gas at spiking spot prices on the open market to cover the forward sales it's made through hedging of gas it doesn't have and can't produce to make up the shortfall.

Dear GG,

Please allow me to clarify?

How do you know:

DEC will have to buy gas at spiking spot prices on the open market to cover the forward sales it's made through hedging of gas it doesn't have and can't produce to make up the shortfall.