Yeah been doing a bit of work on this - SLC are using SYM...

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Bailey241

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03/08/23

14:22

Post #: 69138795
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Originally posted by skotlaroc: ↑

The special dividend is indeed "on top" of the $2.85 proposed purchase price but with a key distinction. The footnote mentions that the amount of the Special Dividend would reduce the Proposed Purchase Price. If the Special Dividend is paid, the remaining purchase price will be lowered accordingly. For instance, if a $0.35 special dividend is paid, the remaining value to be received (in cash and/or Superloop shares) would be $2.50 (i.e., $2.85 - $0.35) per share.

Is my math correct here? If Superloop needs to pay roughly $121m in cash as part of the acquisition deal, it would appear that they will likely need to raise additional funds. They have a cash position of $30m and undrawn debt capacity of $48m, summing up to $78.8m.

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Yeah been doing a bit of work on this - SLC are using SYM balance sheet to fund a portion of the shortfall with the special dividend. SYM shareholders are still paid $121m in cash in aggregate, but SYM paying a special dividend of $0.35 is roughly $30m and reduces cash payable by SLC to ~$91m.

SLC guiding to 2H FCF of $3.6m back on May Investor Day (maybe a touch more with guidance exceeded).

Add the $78.8m cash + debt headroom, they're still short ~$10m short..

I'm assuming they are negotiating an increase to the facility limit at the same time.

SYM Price at posting: $2.81 Sentiment: None Disclosure: Not Held
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1 Great analysis

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