Overall I think it is worth subscribing to. Net debt will drop from $260m to just $64m. Interest cover will massively increase to 18times + Debt to ebitda drops to 1.5times.
The business will be materially de-risked. Enterprise value will be around $260m (a quick check of historical financials shows enterprise value at around $1.2b several years ago). So if they can turn things around and improve for the future, one can get a feel of the upside potential from this.
I have placed a bid into the placement, see how it goes.
RFG Price at posting:
17.0¢ Sentiment: None Disclosure: Not Held
