Put it this way Shelby, others have been approached. But that's beside the point. Because how would another firm be any less dilutive or destructive anyway? Would you prefer La Jolla? They would definately be willing. This kind of situation is their bread and butter. But they would be even more dilutive.
Do you think an RBS or a Pattos would be less destructive? Are the sophs at RBS that stupid with their money? I was a client awhile back. Still know a couple and I consider them astute in general. I don't think they will treat GGP as a charity. And Pattos can be very ruthless.
It's not Novus that is the issue. It's the CNotes in general. And I dont see alternatives to that. Not at this end of the market. Certainly rights issues was a failure (and still dilutive). Cornerstone investore would want huge discount if deal struck prior to any certainty on leases. Debt, not in a million years.
Only leaves Cnotes.
Then it's just a matter of issuer and terms. Novus is no issue. Terms were standard. Interest rate reasonable. The added 5% of well revenue was trivial when divided between so many notes. Conversion discount to vwap also standard. The poor uptake is evidence that the deal was so-so at best.
And their was no boys club. The deal was their and available to anyone that wanted to become a Novus client. Just happened that nobody wanted the notes and Alimold got stuck with most of them. And still their was an unplaced shortfall.
I considered buying the notes but chose not to. So I can only blame myself.
I honestly don't know where we would be without them. But most likely in a much worse position. Companies without funding are generally punnished.
What do you think was/is an alternative and in what way would it be less dilutive/destructive?
GGP Price at posting:
10.0¢ Sentiment: Hold Disclosure: Held
