I don't think there is a lot of point pontificating over what you could or couldn't do with the notes. My experience has been is that there is always some back door way the lender or borrower can screw the counter party. There is always some angle a clever banker/lawyer can come up with to reach a desired outcome. Well beyond all of our paygrades.
As it stands today, I still believe somebody will come in with either fresh equity, or a new debt deal which will remove the existing facilities.
Yancoal want Met assets, have heaps of cash. WHC has expressed interest in further M&A at the right price (albeit they have no cash). NHC is also sitting of a fair bit of cash. If they want to expand their portfolio, would make good sense for them to come up with a con note or provide equity/buy out EMG.
With all the recent transaction activity on Met coal, I find it very hard to believe this opportunity will just go through to the keeper without a fight. There is so much value here that is easily extractable for very little upfront capital.
CRN Price at posting:
11.0¢ Sentiment: Buy Disclosure: Held
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