Even tho Tranche D 40mn expires 31/12/24 and has a very hefty interest of BBSW+9 (c.13.5%), it is still better than issuing equity presumably at a slight discount to current VWAP. So IF there is going to be a cash crunch, it will be the end of Dec when STX has to repay Tranche D, which it can address either by arranging for an extension with Macca, seek alternative bridging finance until DBP interconnector has run long enough to help us pay down the debt, or do a capital raise.
The SE peaker plant, if approved, will hopefully be built using a modified version of the 80mn uncommitted contingent Macca package.
Lots of ifs and buts. One thing is for sure. If STX needs to raise and they go down the insto placement path, we need to start a movement to form a collective voice of protest, including voting down their renumeration at the AGM. It would be an outrageous betrayal of the existing holders to the benefit of the very people who has depressed our equity value.
I understand the cost of doing a renounceable rights issue is far more expensive than a placement (a prospectus is needed for a rights issue for starters), but some time, looking after the owners of the business far outweighs the cost of the extra expense.
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STX Price at posting:
20.0¢ Sentiment: Buy Disclosure: Held
(20min delay)