There's lots of talk on here regarding dilution etc. I've re-read the refinancing announcement several times now and despite the market selling off afterwards it actually makes me feel more positive about the 1H results and what is coming next.
The focal point of the announcement was that SGH had reached agreement with its lenders to make further amendments to its bank finance facilities. The recap word spooked the market but the banks would only be willing to participate in a recap and D4E swap if the company was progressing along nicely with their restructuring plans. The banks wouldn't want equity if things were still going badly so I'm actually seeing this as a positive if they do participate. At what price levels etc this may happen is anyone's guess but afterwards the company will be in a much stronger financial position.
Also achieving an "appropriate and successful outcome for stakeholders" hardly spells out massive dilution in my opinion. Just my thoughts
SGH Price at posting:
26.0¢ Sentiment: Buy Disclosure: Held
