Australia's largest stock trading and investment forum Australia's #1 stock forum

SBM

Click for more information

0.00%

23.5¢ st barbara limited

Ann: SLR:SLR Ready to Rapidly Progress Revised Leonora Proposal, page-25

First 25 Last

Share
Profile

Follow
blind dolphin

27 Posts.

8

02/06/23

13:22

Post #: 68100353
Share

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DD provisions of the binding GMD deal, and the if GMD choose to terminate the deal, and again, if the SLR bid is late, withdrawn, or not even forthcoming, the lender could call the debt into breach and appoint an administrator.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?

Expand

Why would they call in administrators
. Worse case capital raise. Which in my opinion is a better option, as long as the bod are gone.

Last edited by blind dolphin: 02/06/23

SBM Price at posting: 57.5¢ Sentiment: None Disclosure: Held
3 Upvote

0 Great analysis

Reply

There are more pages in this discussion • 13 more messages in this thread...

First 25 Last

Add SBM (ASX) to my watchlist

(20min delay)
Last 23.5¢		Change 0.000(0.00%)		Mkt cap ! $192.2M

Open	High	Low	Value	Volume
23.5¢	24.0¢	23.0¢	$1.010M	4.296M

Buyers (Bids)

No.	Vol.	Price($)
12	438981	23.0¢

Sellers (Offers)

Price($)	Vol.	No.
23.5¢	165626	1

View Market Depth

No.	Vol.	Price($)
11	428981	0.230
19	797851	0.225
30	1519695	0.220
15	685755	0.215
14	474235	0.210

Price($)	Vol.	No.
0.235	165626	1
0.240	689248	11
0.245	652739	17
0.250	344468	9
0.255	273497	6

Last trade - 16.10pm 30/05/2024 (20 minute delay)


Last 23.3¢			Change 0.000 ( 0.68 %)
Open	High		Low	Volume
23.3¢	24.0¢		23.0¢	1429266
Last updated 15.59pm 30/05/2024 ?

SBM (ASX) Chart

SPONSORED BY