Australia's largest stock trading and investment forum Australia's #1 stock forum

SBM

Click for more information

3.51%

27.5¢ st barbara limited

Ann: SLR:SLR Ready to Rapidly Progress Revised Leonora Proposal, page-25

First 25 Last

Share
Profile

Follow
blind dolphin

27 Posts.

8

02/06/23

13:22

Post #: 68100353
Share

Originally posted by yurts: ↑

The issue is not really about paying a break free, it is related to the SBM's debt covenants with the syndicated lender. SBM negotiated a waiver for the interest cover ratio prior to December 2022 (apparently, they looked likely to breach this covenant). Basically, they negotiated to kick the can down the road to 30 June 2023 on the condition that a merger review and refinancing event occurred prior to this date.

The issue is (as I understand it) that if SBM breaches the no shop, no DD provisions of the binding GMD deal, and the if GMD choose to terminate the deal, and again, if the SLR bid is late, withdrawn, or not even forthcoming, the lender could call the debt into breach and appoint an administrator.

A lot of ifsand could's but if you were the board of SBM, would you risk the above scenario on a highly conditional offer that does not adequately address the risk? Ask yourself which way does your fiduciary compass would point?

Expand

Why would they call in administrators
. Worse case capital raise. Which in my opinion is a better option, as long as the bod are gone.

Last edited by blind dolphin: 02/06/23

SBM Price at posting: 57.5¢ Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

Reply

Top Stories

88E

HotCopper users smell capital raising as 88 Energy says "significant update" at Phoenix

HVN

Harvey Norman clocks subdued gains as Echo Law's junk warranty class action kicks off

BPM

BPM Minerals hits high-grade gold at the Claw Project WA; shares jump 86%

Essential Energy conference: Streamlining approvals key to the green energy transition

EXR

Essential Energy conference: Elixir talks up unlocking QLD's Taroom Trough

There are more pages in this discussion • 13 more messages in this thread...

First 25 Last

Add SBM (ASX) to my watchlist

(20min delay)
Last 27.5¢		Change -0.010(3.51%)		Mkt cap ! $225.0M

Open	High	Low	Value	Volume
28.0¢	29.0¢	27.5¢	$1.221M	4.366M

Buyers (Bids)

No.	Vol.	Price($)
1	20000	27.5¢

Sellers (Offers)

Price($)	Vol.	No.
28.0¢	151200	3

View Market Depth

No.	Vol.	Price($)
1	20000	0.275
13	283577	0.270
7	337811	0.265
6	146999	0.260
5	281695	0.255

Price($)	Vol.	No.
0.280	151200	3
0.285	326107	6
0.290	974464	31
0.295	1315212	14
0.300	1627068	36

Last trade - 16.10pm 18/09/2024 (20 minute delay)

SBM (ASX) Chart