The BBPF Syndicate loan $2,451million is seeking credit approval to restructure the debt. So this seems that this part of the debt will just be rolled over and continue.
The B&B Loan, 399million in which B&B is seeking approval of it’s banking group to enter into transaction documents. The Directors expect that this restructure will require a security holder vote. If no agreement is reached then debt is due in March 2010 and could bring the whole pack of cards down. It is this debt that is the concern, does anyone have any other idea’s of what they might be proposing that requires a vote?
Just doing some basic numbers, net assets (inc. intangibles) is 951million, the loan is 399million and a straight deduction of that leaves 552million or approx 75cents per share. I know this is very basic but what would the share then trade at??
I have a feeling people are holding back atm just waiting to see what happens with these debt issues and then if we get good announcements and the company is going to survive then we could see a significant re-rating. Is 80% of the remaining net assets a possibility?
I also note that the dividend in 2008 was 13cents and the net assets were $1.90ish, so approximately 6.8% of net assets or 27% of the normalized EBITDA of 342million. Crunching those percentages on the 2009 net assets of $1.31 shows a dividend of 8.95cents and EBITDA shows a dividend of 9.95cents. I know these figures ignore the debt issues the company is facing such as increased debt costs etc, and that they may be basic and the wrong way to look at things but I just ran them for my own amusement.
Please note that this is all my guesswork only, I am no share guru and I could be missing lots, so don’t rely on anything I write.
BBP Price at posting:
8.6¢ Sentiment: None Disclosure: Held
