Ann: MSB and Oaktree Conclude Refinancing of Senior Debt Facility, page-96

Hi all, been a long time! I just thought I'd drop in because I read the MSB announcement. The good thing is that they needed to get a deal like this done and they did. The interest rate is high but that doesn't change much for the stock price in the short term, as a major news catalyst is needed for the price to move again.

The bad things are probably that this is a loan with unfavourable terms used to pay off another loan (like paying off a personal loan with a credit card). The interest rate is not uncommon, but certainly at the high end of things which indicates risk assessed by the lender. A safer loan might only attract 5-6% interest but this one reminds me of the MNS loan that was issued around 10% which does reflect some risk in the business (of course, MNS went on to double in SP after that for unrelated reasons, so the interest rate can can indeed be kicked down the road a little and then paid off with a CR at higher SP). Also it was a little concerning to see the issuance of warrants for the lender on top of the 10% interest which will dilute shareholders if executed. For me, there are a few red flags here, but at this stage if you have followed MSB shareprice down from $5 to $3 to $1.70 it's nothing much worse than any of the other updates - at this point you either believe MSB can turn things around or not.

Hope everyone here is doing well, and remember to manage your risks with MSB - personally I would be just as cautious of the eternally optimistic posters as you are off the eternally pessimistic. The truth is usually somewhere inbetween.