Hi @noodly, ATC are obtaining a loan of $60m, TNG are to apply...

Hi @noodly,

ATC are obtaining a loan of $60m, TNG are to apply for a loan of almost $900m, both from the German Bank.  I believe this and the fact that both have SMS support is why TNG are publishing ATC related info, however I was still surprised when I saw the publication come through on TNG's website.

The reason why ATC is relevant to TNG and why I chose to study ATC as a TNG holder is as follows:

• it shows a definitive path in which a company has to go down to obtain German finance.  Being at the 7th of 9 steps is more advanced than where TNG are at, which provides a crystal ball of what to expect in regards to timeframes for finance and what hurdles are possible in obtaining this.
• SMS are also the EPCM for ATC and will be providing guarantees of throughput and product quality (have TNG requested these guarantees as of yet from SMS). This is the crystal ball in action that TNG should be using by following ATC; should TNG request a guarantee of throughput and quality of its 3 products from SMS?  This would appeal to the lender.
• The fact that the announcements are very transparent means that we can guess where TNG are at when reading some of the more cryptic of TNG's announcements
• SMS have share stakes in both of these Australian companies

I originally started investigating companies obtaining German finance just to find out about the time frames involved for TNG, as the announcements by the company were obviously not aligned with the reality of the situation.  As a result I admit I now invest in both TNG and ATC.

Finance for ATC has taken just over a year now, for a $60M loan.  They should have a finance decision in the coming months once SMS have provided the lender with the revised amount of loan required.  TNG are right to follow the lead of other companies and follow their finance path.  

TNG's NPV is huge, and cannot be ignored.  The loan amount is also huge, and also cannot be ignored.  It would be good to read an announcement about where the company engaged to obtain finance is at in regards to this application.  

Wanderdog