Perenti Monitor

Plenty of bondage on disallowed … shareholders to companies, companies to companies, shareholders to shareholders, and just about everyone to banks.
- the wheel of life.?

And is  Perenti to roll that money wheel again  and look for new forms of bondage?

Perhaps?
-Less than a fortnight back, The Australian’s Bridget Carter said she had  heard rumours  Perenti might be a bit this way inclined….




https://www.theaustralian.com.au/bu...i/news-story/d083c6ad6b1b4292ed0e91af47736372

Could Emeco raising also push Perenti?

Emeco earth moving equipment

• BRIDGET CARTER
  DATAROOM EDITOR
  
• 1:47PM JUNE 28, 2021

Emeco’s successful $250m Australian dollar bond raising last week is being seen as good news for the mining services space and some believe it could prompt Perenti to also tap the market.

Emeco priced $250m worth of senior secured notes at 6.25 per cent and the proceeds are being used to repay its outstanding US bonds, taken out at a rate of 9.25 per cent.
Apparently, Emeco secured about $400m worth of demand for the raising.

Perenti was looking to tap the Australian bond market last year but opted to target the US market instead, and now some suspect it may make another attempt to lock in local funding.

Mining services providers, many of which service the coal mining sector, have been out of favour with lenders due to environmental, governance and social concerns centred on their exposure to coal.
Emeco is expected to reap about $235m to $238m of operating earnings before interest, tax, depreciation and amortisation for the 2021 financial year.
In August last year, Emeco carried out a $149m equity raising rather than heading to the US bond market to refinance its debt, which it had been working to do through investment bank JPMorgan.
It left the remaining debt owed at the time at about $US180m, or $250m.
Black Diamond owns about 29.4 per cent of the stock and holds about half of the loans to the company.


Here’s a reminder of the debt situation as at last December:

Perenti FY21 Half-year results;


Group CFO Peter John Bryant.…. “Although it now seems like a distant memory, we completed a successful debt refinance of our U.S. high yield bonds in October of last year.
The placement was circa 3x oversubscribed with significant interest across the globe.
Given the level of interest, we elected to review our capital structure and increased the value of the placement from our targeted USD 350 million to USD 450 million.
We also reduced the capacity of our revolving credit facility by $130 million.
The final allocation of the debt, which reflected the keen support for the business, saw bonds issued to high-quality investment names -- or investor names across Asia with 39%, Europe with 36%, the U.S. with 21% and Australia with 5% at the final placement.
We secured a reduction in our coupon rate, which now sits at 6.5%.
And importantly, we have in place a long-term 5-year core debt facility that is effectively covenant-free.
We also held leverage constant at 1.3x, a number we are comfortable with, but a number we are targeting to bring down to circa 1x in the near term.” [ref]


Watch this space?


cheers