Well, it is inevitable isn't it. You have two choices - raise debt or raise equity. The debt sources are in the process of being sufficiently chastised as the greater fools (c.f. OZ Minerals, wider RMBS/Leveraged Buyout world). So the only option is to tap the equity markets. It is not about whether it is a good time or not. This is life or death isn't it. Normally you would not choose to do so.
Look at the Banks. They can't spin off their mortgages and other loans into special purpose vehicles at all, in fact they are continually bringing stuff back on balance sheet with term loans at call dates. So they are raising equity to keep their capital adequacy ratios, well, adequate. (Note to file - maybe Rudd was right, maybe the deposit guarantees ARE needed). Necessity is the mother of invention.
So if we need more evidence that GSJBW is pressuring PNA to give the $80m back on time, I don't know what it could be, short of a press release, that is.
PNA Price at posting:
10.9¢ Sentiment: ST Buy Disclosure: Not Held
