It's about the financing. Full stop.
From p.15 Mezzy Debt: In May, "received and executed a non-binding term sheet..." USD120M. On 27 July an international (Willkommen?) bank began diligence.
From p.15 Alternate Financing: ATC, "On 15 June...is considering... stream finance... executed an indicative non-binding term sheet for US$60 million..."
From p.15: Here's the bit that grabbed my attention concerning stream financing, for the cash (caps mine), "in exchange for a PERCENTAGE of GROSS SALES." I speculate that's the sticking point -- GO Iggy!
From p.16: To draw down the negotiated KfW IPEX Bank USD190M, ATC must have the rest of the funding secured.
CR: From this bullboard it reads like the CR is real. My understanding is that ATC has the green light for a POSSIBLE raise, ie. not a fact. (PLEASE point me to the news that a CR is a fact not a possibility.)
Strategy, or my Bullish Bias: 1) The sticking point is in the mezzy; 2) Iggy gets ONE chance to get it right; Outside markets affect these negotiations, both bourse carnage, AND the HPA market demand. 4) With Investor impatience/fatigue comes pressure on Iggy to, "get 'er done," with one shot retail here is misguided, and; 5) The possible CR is a play to dangle in front of the counterparty angling for a BETTER deal.
OV
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