I’m trying to digest this info, which on the face of it is not...

I’m trying to digest this info, which on the face of it is not of any major consequence. However, any thoughts I’m not considering?

the facts:

- change is driven by NRW not the noteholders

- they’ve done it as soon as they could (after 2 years)

- they want to borrow more

- NRW has strong support from bankwest

- the balance sheet is low risk and leverage could be added while still keeping it relatively low risk compared to peers

- there are now some high profile divisions on the market (DOW mining services and now RCR - my sympathy to any holders there, btw)

- they are paying $0.76m to exercise this option

Maybe:

- if they were to do another acquisition funded by bank debt and an equity raise, it would be very complex on top of the existing debt security structure

- the noteholders had to approve the Golding acquisition I think and might not want to go again

- we hear about other private companies that are likely to be acquired at this point in the cycle 

- now is a good time to do a larger acquisition while the revenue runways are medium term positive and debt is staying fairly cheap

Reminder about out the notes and their existing relationship with Bankwest - 

http://thewire.fiig.com.au/article/2017/08/16/nrw-acquires-golding

cheers,

pb