So CJ, if Lynas can't pay down the bonds as you've said and faces massive dilution from bond conversion - why do you still claim there is $600m debt due in three years? You realise that coversion ELIMINATES the debt right? I'll give you the bond=dilution argument or the debt argument but not both together.
I've just reread the bond amendments and should JARE get paid out early then MtK have three months to convert and also the Maturity Date of the facility is three months after JARE is repaid.
Now, I have a couple of questions.
Firstly, you brought to my attention that the restricted cash account is actually split into two, to service both facilities. If you can work with me and accept that at some point after 31/7 this account will be closed and funds returned to lenders due to unrestricted cash exceeding $25m. Not all restricted cash will go in deferred and interest, some must be returned as principal repayment? If so will that reduce the amount of bonds MtK have? Does that represent a repayment on the facility or a purchase back of bonds? It's a subtle but important difference.
Secondly, if after JARE is repayed (again work with me here) what happens and in which order. Lynas wants to repay principal, MtK want to convert some bonds. Can Lynas repay principal? Do Lynas have to buy the bonds back (and at some function of the share price)? Can MtK convert as much as they want or only whatever is left?
LYC Price at posting:
10.5¢ Sentiment: Buy Disclosure: Held
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