Ann: Blue Sky H1 FY19 Results Update, page-92

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jackAJA

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25/03/19

13:39

Post #: 37874107
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Originally posted by Nathan321: ↑

As per the 4D report, interest rate of 17.2% for Oaktree loan. almost the rate we pay for credit card over due.
2017 they paid $0.23 dividend. today the share price is $0.50.
On 8 November 2018, Oaktree Capital Management L.P. (Oaktree) invested $50 million via a 7-year senior secured convertibleloan note facility.
The Directors anticipate that covenants may not be met at 31 March 2019. Within 5 months of borrowing. shocking.

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I don't think Oaktree gets the full 90 mill if they call the money in early.

Originally posted by pikel1980: ↑

ok, so what we are approximately 1 week away from what blue sky is saying is a breach of the terms of the loan agreement with Oaktree, you gotta think that oaktree are sitting there thinking to themselves, do we want to negotiate or do we just take the company?

Share price is dropping about 10cents a week, without an announcement that Oaktree have agreed to waive the condition, its only going to continue to drop.

This can really only play out a couple of ways:
1. Oaktree say sure without conditions (not likely would be out of character for them)
2. Oaktree say sure, but we want to change conditions - the conversion price for the shares would be the obvious thing to change.
3. Oaktree say please give me back my 50million plus the balance interest of 40million (ie 90mil) and walk away at which point blue sky have to do a capital raising for the 90mil....

Honestly I think option 2 is the most likely - cut the conversion price down to a $1 or something

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BLA Price at posting: 49.0¢ Sentiment: Buy Disclosure: Held
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Ann: Blue Sky H1 FY19 Results Update, page-92

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