It’s not just the rate! It’s about IRR. Ex $100 loan with say a rate of 5% p.a. BUT arrangement fee is say 20%, means IRR for one year is 25% !!
I hope they will be fully transparent with the full Terms and Conditions. Thereto, you want to see WHAT covenants there are as in 1. financial covenants 2. How the loan is triggered say on late payments etc.
AJM will IMO need to be fully transparent here otherwise I would sell.
PS if this was a done deal as in being singed now, should have be announced tonight or early tomorrow morning. If not, it’s not a done deal until inked.
AJM Price at posting:
6.3¢ Sentiment: None Disclosure: Not Held
