RE: sorted27 Aug 2022 10:21
avo333 - this is the extract from SD's interview with Proactive Investors on Thursday:
"And you say in the announcement that they’ve (Tribeca) agreed to work with you to provide an additional funding facility apparently?
- Yeah so look I should talk about why we’ve raised equity in terms of that, we are solving to be fully funded and I think of that in terms of debt
- You know, that’s what we fundamentally want to do, we want to bring in a substantial debt piece and that leverages the benefit to equity holders, you know… I understand the magic of leverage in these things
- Like if you’re buying your own home, you know the banks will never lend you 100% of the value, they want some equity to sit alongside them and I think people should view this as part of that step
- It gives a lot of confidence to the banks and with that now in place, I think we can now go to the banks and say look, we’re all ready to go with this
- We’ve needed two things to happen that we’ve needed: to solve for the equity and we’ve also needed to know how much of the asset we own
- You know, we found that out on Friday and we found out in a really positive way that we own 30% of the asset, that was the best possible outcome for us, our fundamental value is increased by that
- But if we think about the debt piece, you know we have the equity in place, now we bring on the debt and this all helps us be fully funded
- And the fact that we had an opportunity to go to the market now, corner stoned by a really well respected fund in Tribeca… the opportunity was too good to pass up
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