Ideally... 2Q improved profits and no breach of covenants means fine tuning of terms and conditions. BLY is looking at reducing it's loans to below USD 700m, current at about USD 770m. I would hazard a guess that between operating cashflow, no dividend payouts, cost cutting measures, sale of some assets and perhaps even some share placement, it shouldn't be too hard to raise 70-100m USD.
Hypothetically, USD 50m = AUD 63.75m = 255m [email protected] = 17% additional ordinary shares. I would risk another assumption that any capital raising will probably be at a higher sp... not that scary a dilution imo.
The biggest sp buzzkill has been financing and the risk of default and failure. The risk of default/failure to me in the present environment is small, and the market is frankly quite conservative. We should see most of the default risk premium get priced back into the share. I'm not a valuer, and so wouldn't want to guess the potential sp. But looking at the BLY's price chart, the potential is definitely a lot higher than what we are seeing right now...
BLY Price at posting:
20.6¢ Sentiment: Buy Disclosure: Held
