POSCO Deliverable Overdue?, page-23

Isn't jaberwock's comments re "partial funding" referring to - senior and subordinated debt and who is responsible for each? Jaberwock's comments, IMO, are merely ing responding to those comments made in the  announcement of the POSCO MOU.................

POSCO E&C mandated to procure senior debt and deliver a fixed price lump sum for project construction

While Magnis is responsible for arranging subordinate debt and equity and the overall coordination of Project funding

"The terms of that funding could have implications for the share price."

In the case of senior debt it's lower-risk compared to subordinated debt.  The reason being is the lender of senior debt is usually a commercial bank and therefore it's expected to have more favourable interest rates.  Subordinate debt is a 2nd level debt, is a higher risk investment for the lender so commands  higher interest rates.  In the event of a company going under, the senior debt lender is first to be repaid.

So yes, whatever the outcome of the "funding" it would have implications - it would be based on the % of senior debt secured vs subordinate.

" It would be good to know how much commitments of funds POSCO has already achieved"

POSCO is not required to give a running commentary on where they are with funding commitments. SYR was in talks with debt fund lenders for years - all unnamed.  No information given as to progress,amounts achieved/not achieved.   Eventually they simply announced equity funding.


If I were Prime1, I'd be more concerned with getting clarification as to what the status of his ASMET MOU is - that MOU was signed back in April 2014, has not been made binding, very little information has been forthcoming, the DFS included the volume and Prime1 has howled down any discussion regarding same on said thread.