I think this is behind a paywall...essentially discusses the spike in bond yield to over 11%. One analyst is questioning the ability to pay back the $100M bonds in March 2021 and is picking that the company might need to accelerate plans for an equity raise.
Some kind of discounted rights issue.
That would be all fine and dandy for existing shareholders who can participate (and want to kick more money in the tin). But at the current SP...those who can't participate would be diluted to oblivion.
Current debt is:
$100M bond maturing March 2021
$200M banking facility, reducing to $150M in July 2021. Currently $116M drawn down as as the last financial report.
Surely they can issue another bond and/or pay back some of the existing bond with working capital and existing debt facilities? A rights issue would have to be an absolute last resort given where the SP is?
SKT Price at posting:
25.0¢ Sentiment: Buy Disclosure: Held
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