Hi Chez, re "you seem to have forgotten that there is a $20...

Hi Chez, re "you seem to have forgotten that there is a $20 million undrawn funding package from Tribeca that could only be drawn down post merger if required"

yes that was the second tranche of that $40m debt package.

Given the horrendous terms of that loan I am hoping that they don't draw down the second tranche and instead try to replace it with some form of capital raising, perhaps just to sophisticated investors or maybe a full blown rights issue so that we can all participate to avoid being diluted.

The terms of that loan were ( LIBOR +13% + 4% arrangement fee)

Perhaps they should go the full hog and do a capital raising for $40M, and repay the facility in full early and not draw down the 2nd tranche , still be liable for early redemption fees by the looks of announcement though.

Does the cost of this facility tell us something about the risk that Tribecca (as the lead lender) still see in the project

Anyway here is that Loan announcement for anyone who has forgotten about it, dont forget to scroll down to the bottom for the Annexure, where the costs are all outlined.

https://hotcopper.com.au/threads/an...isting.4459979/?post_id=35873498#.XBXztTFRfIU


I would certainly be willing to take up my rights if they decide to do a raising at say 25c, rather than paying those interests rates.

Thanks