Just trying to work out what the new conversion price will be...

Just trying to work out what the new conversion price will be for Mt K.

I have studied the terms of the bond but buggered if I can work it out.

It seems the agreement relates a lot to what is deemed "fair value" at the time of any anns re a SPP or the like.

Then it also comes down to how many new shares are issued, and obviously the SP at that time.

Also notice any amount over $50m cause further issues, so that may be why LYC went with the $30 +$10m raising?

If we assume the SPP ends up around 10c (lets say diluted) that could be 400m new shares onto the register.

Now if the Conversion price for Mt K is say lowered drastically to say even 50c, that would be 450m shares for their $225m.

So Lynas shareholders need to keep in mind the number of shares that could be put onto the register could be north of 800m, which is around 40% of all current shares.

This would also give Mt K around a 20% holding, which could cause some other issues down the track if they are quietly building up a hidden holding at these lower levels, maybe even participating in the SPP too? which brings down their conversion price in theory, and may put them into a position of a takeover strategy at some point.

Mind you, I think they would have to convert to do so.

Getting off track, if the Japanese lending group are negotiating the Japs debt, they have to make sure that Mt K subordinated position is not impeded in any way as per the bond agreement.

This could cause some issues imo as the linkness is that the new terms will be somewhat harsher and higher cost to Lynas, imo, so Mt K could cause some interference there.


Anyway, just some observations, can anyone work out the conversion price for Mt K if say the SPP is 10c?