Still baffled by this whole MCS thing. Then, I read the recent...

Still baffled by this whole MCS thing. Then, I read the recent prospectus and cam up with this -

Why is the Offer being conducted?

The Offer is being conducted to: – provide McAleese Group with a liquid market for its Shares and an opportunity for new investors to acquire its Shares;

Repay in part McAleese Group’s bank debt;

Enhance McAleese Group’s financial flexibility to pursue the growth opportunities outlined in Section 3.1.3;

And – provide McAleese Group with enhanced access to capital markets.

The Offer also provides the Existing Shareholders with an opportunity to realise part of their investment in McAleese Group.

Proceeds received by McAleese Group from the issue of New Shares will be applied to:

Repay bank debt and a portion of other debt related costs, $117.7 million;

Pay certain expenses of the Offer, $7.8 million;

And – pay direct costs associated with the Mona Vale Accident and subsequent review of fleet maintenance.

So they wanted the IPO to pay down debt and pay the expenses of the Mona Vale accident. Am I the only one to think this reeks of desperation and dodgy backroom deals ?