Ei Share Discussion Threads

[jeffian] 13/3/2020 12:16

Interestingly (or not, perhaps!) the bonds just got redeemed without a by-your-leave. I haven't received any paperwork or notification but they have disappeared from my portfolio and the equivalent cash has been paid.

[jeffian] 14/2/2020 15:11

No, I don't suppose you would. That's saved you £3bn, then. Phew, close shave!

[spob] 14/2/2020 11:12

would you buy a company with billions of debt not knowing beforehand whether or not the debt would have to be refinanced or redeemed

I wouldn't

[jeffian] 14/2/2020 11:06

By whom? I doubt Stonegate get direct access to share/bondholders until after completion?

[spob] 14/2/2020 10:57

i would have thought if they were to be redeemed you would have been contacted by now

bwtfdik

[spob] 14/2/2020 10:56

be interested to hear the final outcome re the bonds, for future reference

[jeffian] 14/2/2020 10:51

Nothing has been said yet but, as above, the supposition is that they will be redeemed. Pity. I shall hang onto my tranche of 2031 bonds until they are taken off me.

[spob] 14/2/2020 10:40

So what's happening with the bonds ?

[jeffian] 14/2/2020 10:22

Don't know if anyone's still here but CMA cleared the bid this morning and the Court hearing for the Scheme of Arrangement has been set for 27/2. Shares will be delisted on 4/3 and payment received by 20/3 latest.

End of an era for me!

[jeffian] 26/7/2019 23:08

#64,

spob, I am the wiser because the offer document I was sent was silent on the bonds and someone has kindly done some research that I didn't do myself. We might not know what the outcome may be but at least I now know what the options are.

[jeffian] 26/7/2019 23:03

Well I had the conversation with 'one who knows' how these things work. My line was that, with private equity putting up most of the £3bn to buy the company as financed currently, would they/could they find the other £2bn-odd to refinance the debt? Apparently, the answer is 'yes'. EIG's debt currently costs +/-6.5% and PE would expect to make a considerable saving on that. I have no idea. I would be disappointed if taken out of my EIG Bonds as they form a solid income base for my SIPP, but I won't have any say in the matter either way.

[leading] 26/7/2019 16:49

Ok spob, you are entitled to your view.

However, Mr Market doesn’t seem to agree with you, otherwise how do you account for the sudden movement in the bond price from about 111 to 105 when the bid was announced? It’s on ADVFN. See AK44

[spob] 26/7/2019 16:19

" Thank you. For all the flak and rubbish that goes on on bulletin boards, they are genuinely helpful on occasions!

It will be interesting to see whether that condition applies "


So the truth is, you are none the wiser. LOL

in my opinion, the bonds will not be repurchased

but that is just in my opinion

[jeffian] 26/7/2019 11:27

Thank you. For all the flak and rubbish that goes on on bulletin boards, they are genuinely helpful on occasions!

It will be interesting to see whether that condition applies. Whether Stonegate has a worse rating than EIG, the bonds are secured on a ring-fenced group of pubs so the security is the same.

[leading] 26/7/2019 09:30

Yes. I had to get it from the company as I couldn't find it online.

They responded same day.

[jeffian] 26/7/2019 09:26

Thanks, leading. Where did you find that? Is it in the Bond Prospectus?

[leading] 26/7/2019 08:39

I hold some of the 2031 6.375% Secured Bonds. Precis of the terms as follows:

After a restructuring event (which this is)if the bonds are rated by a rating agency and such rating is less than investment grade (tick) the bonds shall be immediately due and payable at their principal amount together with accrued interest without further action or formality.

So, I expect the bonds to be repaid on completion of the transaction. This also explains why the price of the bonds fell substantially after the takeover announcement.

Jeffian, I wish I had your CGT problem, maybe I could lend you some losses, but that is another story.

[spob] 22/7/2019 17:49

they may choose to buy back the bonds or they may be forced to refinance

i don't think stonegate are in a position to do either (just imo)

so i'm guessing there are no such clauses in this case

[spob] 22/7/2019 17:47

sometimes there are change of ownership clauses associated with company debts

not sure what the situation is for EIG

[jeffian] 22/7/2019 17:09

#55,

I do fancy waiting until 2020. I have a huge CGT problem already this year following takeover of RPC. If both go through this year, I shall be personally funding the National Debt!

[jeffian] 22/7/2019 16:42

I assume that the corporate bonds will continue as they are? I hold a fair number in my SIPP for income generation, the attraction being that they are secured on a ring-fenced group of pubs of equivalent value. The offer document is silent on the bonds. Any thoughts?

[leading] 19/7/2019 09:41

I sold out today.

The offer price looks reasonable at something like a premium of 13% to net assets excluding goodwill and a decent EBITDA multiple.

I don't fancy waiting until 2020 for CMA clearance on a stock that doesn't pay dividends.

A counter-bid is always possible, but I think it would be easier for interested parties to negotiate with Stonegate to pick up parts of the business that they are interested in post transaction.


It's a big mouthful for Stonegate, but that's not my problem.

It was a surprise to see a bid here. Good to see that there weren't any leaks.

[spob] 18/7/2019 16:16

Blimey

are you disappointed with this offer then

[jeffian] 18/7/2019 16:14

That’s not even close. My wife has held shares here (including predecessors) for 50-odd years,