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16.1%

23.5¢ st barbara limited

yeah, fair shout. I get the debt covenants/ICR side of things....

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Marasco

251 Posts.

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02/06/23

13:35

Post #: 68100691
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Originally posted by yurts: ↑

The issue is not really about paying a break free, it is related to the SBM's debt covenants with the syndicated lender. SBM negotiated a waiver for the interest cover ratio prior to December 2022 (apparently, they looked likely to breach this covenant). Basically, they negotiated to kick the can down the road to 30 June 2023 on the condition that a merger review and refinancing event occurred prior to this date.

The issue is (as I understand it) that if SBM breaches the no shop, no DD provisions of the binding GMD deal, and the if GMD choose to terminate the deal, and again, if the SLR bid is late, withdrawn, or not even forthcoming, the lender could call the debt into breach and appoint an administrator.

A lot of ifsand could's but if you were the board of SBM, would you risk the above scenario on a highly conditional offer that does not adequately address the risk? Ask yourself which way does your fiduciary compass would point?

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yeah, fair shout. I get the debt covenants/ICR side of things.

just seems a lot of carrying on from SLR (imho) when they probably could have worked around it previously.

seems in the bag for GMD now which I'm not complaining about.

SBM Price at posting: 57.5¢ Sentiment: None Disclosure: Not Held
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(20min delay)
Last 23.5¢		Change -0.045(16.1%)		Mkt cap ! $192.2M

Open	High	Low	Value	Volume
25.0¢	25.0¢	22.0¢	$6.812M	29.04M

Buyers (Bids)

No.	Vol.	Price($)
19	1030382	23.0¢

Sellers (Offers)

Price($)	Vol.	No.
23.5¢	54447	4

View Market Depth

No.	Vol.	Price($)
19	1030382	0.230
29	1286635	0.225
36	1658507	0.220
25	1287832	0.215
9	429938	0.210

Price($)	Vol.	No.
0.235	54447	4
0.240	474286	13
0.245	633597	12
0.250	655739	11
0.255	187603	7

Last trade - 16.10pm 27/05/2024 (20 minute delay)


Last 23.3¢			Change -0.045 ( 16.0 %)
Open	High		Low	Volume
25.0¢	25.0¢		22.3¢	9777778
Last updated 15.59pm 27/05/2024 ?

SBM (ASX) Chart