Debt and equity deal, page-27

RCF are simply taking away a large amount of upside that was there for shareholders previously. Ideally the exercise date was better timed to coincide with expansion plans (BAT wont need the money in 5 years and may have to source more between now and then to develop a second mine)

Then RCF are derisking their debt position by requiring BAT raise a further $28m in equity (well above what is required I would think) to make sure they dont get into trouble (RCF know all about this, take a look at WLF)

however the decision of management to announce before locking away the $28m is dumb. As if there wasnt enough speculation of an equity raising before. RCF deal insists it is equity too so really they are down to two options....another crap raising with Hartleys/Morgans (5 c?) or potentially a strategic partner comes in at a premium. With so much upside taken away already it will be hard to entice new investors to stump up at a decent price wherever the money comes from.