Charles Jillings, CEO of Utilico, energized by strong economic momentum across Latin America. Watch the video here.
The spread is large but if you are holding medium term and like me, you assume the discount will narrow combined with the dividend you should have much to worry about.
This isn't taking into account the possibility of sale of assets with close to NAV return.
OR a merger which would narrow the spread anyway.
Krusty
Yes it would be silly to give shareholders a return before paying down debt.
Assuming they could pay shareholders before their/our lenders it would result in debt payments rising as income fell. Resulting in an inability to pay dividends.
Of course the lenders wouldn't allow it as there is no doubt a clause based on the LTV.
Anyway I will continue to enjoy the dividends while I wait for a return of capital. I mainly spend it on beer , how about you!!
ToS1963
"There will (hopefully!) come a time when they start paying us back. Which will also be reducing gearing."
Ridiculous statement.
Paying back capital to shareholders does not reduce gearing.
Pay back debt reduce gearing.
Paying back capital before reducing debt increases gearing.
THE LTV INCREASES
Personally I think some people are expecting assets to be divested to quickly.
It's going to be a slow process. Very slow even.
Enjoy the dividends while you wait and don't worry about the share price.
AND not only should you pay down gearing (debt) first they may have no choice. Why would the lender allow you to give out capital which the loan is paying for?!
Tos1963
"No need to be rude Krusty. There’s far too much of that on these boards, let’s try to keep this thread clear of that. What I do, and don’t understand is none of your concern."
Come on, you must know what gearing is?
"Whatever that means"
Really?
"just hope that they get the timing right regarding how long to keep the 'ACTION' investment"
The chairman has said they believe there is 400% infill ?
Not sure which countries he is talking about?
Surely not Holland?
Eastern Europe probably
Southern Europe just started.
So a long way to go.
Possible expansion into the US?
In the case of the latter...please don't list/sell!
"RE: BioPharma Credit10 Aug 2023 09:20
At 86 cents this is yielding 8% and as you say decent record.
what others have higher dividends?"
Always worth noting with BPCR other than covid they always pay special dividends.
Pedrobull
""LumiraDX has outstanding debts of $350m and an equity valuation of just $26m. Having faced liquidity issues for several months, the company had to amend its $173m loan with BPCR for the 15th time yesterday."
Looks to me that BPCR are not getting paid more than a few cents per dollar on this capital"
Looks like 100 cents on the $ to me. Possibly more if it's classed as paying back the loan early as in a make whole payment
"LumiraDx Announces Agreement to Sell its Cutting Edge Point of Care Technology Platform to Roche
December 29, 2023
It is anticipated that all of the sale proceeds of the transaction will be used to repay certain amounts outstanding under the Company’s senior secured loan agreement, and that no sale proceeds will be distributed to the Company or its shareholders. The appointment of the administrators and sale to Roche represent the culmination of LumiraDx’s previously announced strategic review process led by Goldman Sachs & Co. LLC."
I Would guess a reasonable uplift in share price Tuesday. Say 5%?
This is not really a company to expect any share price move until a fall in interest rates.
Obviously that means less income for BioPharma but also less risk of defaults....at least that's the way markets see it.
Yesterday Traded between £15.13p and £12.04p.
I put a Limit order on st £12.70p on freetrade, didn't go through. Neo brokers are cheap but very unreliable on limit orders.... very
Specially as it finished at £13.18.