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£600m bonds aren’t due for repayment of capital until 15/11/2026
The £58.5m interest is due 15/5 - no indication that PFC can’t pay that.
Covenants are all good.
Issue is payment of contract guarantees, as understandably clients want / need more cover in these uncertain times. . . It’s only a pity that PFC have been so darned successful in winning huge contracts eh?
Hence the need to restructure the debt to release more cash to cover these guarantees - victims of our own success.
Unfortunately, the feckless greedy bond holders have seen this as an opportunity to get more of the cake . . . Why have £600m of binds that may not return pr, when you could get 80%+ of a company that’s set to make say 6-8% on£8bn (plus whatever else PFC win going forwards). Makes simple economic sense. It’s a logical outcome.
Sadly D4E will happen. Hopefully existing shareholders will get opportunity to participate on beneficial terms.
Then hold for 3-5 years and we should be good.
Only hope to avoid an extreme dilution is asset sales, strategic investor or a massive turnaround in cash generation from existent contracts.
Just a bit of hard realism. Cheers all. Red
@PC - frankly you’re bringing a new definition to desperation.
There will be some D4E swap, but BHs will not get par. Most likely somewhere between 30-50%. That’s what the market is telling you, being priced at 28% . . .
There will be some capital from asset sales, some new strategic investment and possibly some positive cash flow from trading.
All your scaremongering about PFC losing booked business is baloney . . . If that had happened then they’re obligated to update the market per LSE yellow book rules . . .
This is not some tinpot AIM listed flaky £2m MCAP minnow we’re talking about. The back book alone has value in itself . . . .
Anyhow, enjoy your Sunday in the beautiful sunshine 👍
@PaulCurtis
Well, well, well. Guess who’s back, back again . . . I told you that the equity will outperform the debt.
Equity down 20%, debt down almost 30%.
It’s like the market doesn’t believe D4E will actually happen in any meaningful scale . . .
Hmmm . . .
@Slift - this is old news.
Why are recycling this stuff? Everyone knows that credit rating agencies have downgraded PFC bonds - that much is evident in the price.
Wondering if you have an agenda?
@PaulCurtis
Did you even read the RNS?
“ . . . Active discussions are progressing with Petrofac’s stakeholders including its lending group . . .” 🙄
@PaulCurtis - the RCF will not need to be paid off. It will roll over to another arrangement . . . 🙄
QQ - can you show me exactly where in the Bonds contracts and in the RCF contracts it states the exact assets that are held as collateral by the bank and bond holders against PFC default? Ta muchly!
. . . unless Paul, the institutional bond holder know something that you don’t and are dumping them on unsuspecting retail holder rubes like you?
. . . because exporting scrap is directly akin to running a global petro-services company . . . this is an extension of an existing contract not low balling a new client to “get a foot in the door” . . . try reading the RNS properly it even states it in the headline . . . Muppet 🙄
. . . been read by so many, saying so little with so many words . . .
Challenges even those of UKOG for verbosity and communicating the square root of f*ck all.
Truly a “nothing to see here” update.
What a waste of money.
PFC is traded on FTSE main listing.
It is NOT an AIM share or “essentially an AIM” share at all.
AIM operates under completely different listing rules and governance / oversight by the regulators.
Honestly what utter tosh.
I don’t think that we will hear much about the refinancing before then either.
In the interim, bar something exceptional (another Tenet contract win?) we are at the whim of the short position hedge funds . . . Could get choppy out there. Hold on tight 👍
“Hello James,
Can you advise when Petrofac will be updating its Financial Calendar for 2024?
We are over halfway through Q1 ‘24 and for the 2024 financial calendar to remain completely blank is inconsistent with your peers and smacks of unprofessionalism.
Regards”
. . . just wondering when the stampede for the exit will start . . .
🔥 🩳 🔥 🩳 🔥 🩳
😈 😂🤣
The markets are a mechanism for transferring wealth from the impatient to the patient . . .
That was the date of the trading update in 2023. I wouldn’t expect anything before then. The work that Aidan is doing takes time and patience for a sustainable outcome. Fix once and move on is the objective here. I expect something of substance to be announced in April, but not before.
Patience is required here.
Not priced to go bust. That would be SP of 0p.
Priced for high likelihood of debt for equity swap.
2 entirely different things.
They paid the security in the first Tenet contract. You don’t know what cash has been recovered since then from other contracts. They are not in breach of covenants.
There will be an asset sale. There may be a strategic investor. I view D4E as unlikely, or at worst case very limited.
Hence I’m invested. I take it that you’re not and / or are holding a short position?
OP
PFC can meet the terms of its bond debt.
What has found more challenging is finding the cash to poace as security on the contracts it has been so successful in winning.
But if you read the RNS, you’d already have garnered that intel and factored it in wouldn’t you?
Nah - don’t buy it. I don’t think we’re going to get a squeak out of management until end of April. Going by historical update timings.
Don’t trust those projected dates at all.
@DarkKnight - can you point me in the direction of the intel which says that and update is due tomorrow? Ta muchly 👍
I’ve blocked you all - don’t bother trying to talk to me.
It’s an exercise in futility. A bit like your lives.
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