lol, are you guys serious? refinancing $1bn of debt is not the...

lol, are you guys serious? refinancing $1bn of debt is not the same as refinancing a simple home loan.

have a look at oz minerals for god's sake

and i disagree that vpg is doing this simply 'to keep its options open'. the announcement specifically says they have initiated talks in response to the asset impairment review process. i.e, we know we are going to breach covenants, that's why we are getting the ball rolling now. babcock used exactly the same words from memory.

as for the equity raising, someone please do the calculations. an additional 400m shares will be issued, resulting in a massive 20% eps reduction and 20% lower dividends moving forward. is that really worth a lously $60m in debt?

as for the issue price, you guys are all raving on about how it will be a massive premium to the current sp. but how fair is it when compared to NTA.

i estimate NTA will be 60c at december 30, plus another 40c for funds management. so fair value for vpg shares is about $1.

at a 15c issue price, that is still a whopping 85% discount to fair value. is that really fair and reasonable? the most distresed capital raisings in the property sector so far have only been done at a 50% discount to NTA. so i don't see why vpg should issue equity at these ridiculous prices if they are not distressed.