Danakali Share Discussion Threads

[dell314] 16/1/2008 17:53

Chancer - presumably, you haven't read the latest financial statements:

Indebtedness-At 30th September, 2007, the Group had consolidated indebtedness of $467.9 million, including current maturities of long-term debt and notes payable of $23.4 million. The Group's indebtedness includes $119.5 million of indebtedness under its credit facilities with General Electric Capital Corporation ('GECC').

The figure you have quoted is ignoring the convertible debt that stood at $344.8 mln at last balance sheet date and is increasing daily.

As only complete loonies would convert debt at a strike price so far out of the money, it is reasonable to assume that convertible holders will wish for repayment, as opposed to conversion. Therefore, it is debt!

Hope that helps.

Rgds
dell

All IMHO, DYOR etc.

[boxer beat] 16/1/2008 17:40

"$145m debt Boxer Beat....please get your facts right first"


Please read the financial statements, its all in there :




9. The following is an analysis of net debt (current and non-current bank
and other loans including finance leases less cash and cash equivalents):

As at As at
30th September 31st March
2007 2007
$000 $000
______________________
Current portion of long-term borrowings 20,524 183,009
Non-current bank loans 99,566 63,941
Convertible participating shares
including derivative financial instruments 347,053 333,346
Finance leases 729 1,025
Less: cash and cash equivalents (25,021) (186,573)
______________________
Net debt 442,851 394,748
======================



What is the NET DEBT figure ?

[chancer6] 16/1/2008 17:36

$120m debt actually Boxer Beat....please get your facts right first and as I've said if you don't like what you see then move on.

Danka Business Refinancing Agreement

RNS Number:6265Y
Danka Business Systems PLC
19 June 2007

For Immediate Release 19 June 2007

Danka Business Systems PLC
("Danka" or "the Company")

Danka Announces Refinancing Agreement
Totaling $145 million with GE Corporate Lending

Danka Business Systems PLC (LSE: DKN; NASDAQ: DANKY) today announced that it has
entered into an agreement with GE Corporate Lending for a new senior secured
credit facility totaling $145 million that would be used, together with the
proceeds of the Company's previously completed sale of its European operations,
to significantly reduce and refinance the Company's existing indebtedness.

Upon completion of this financing, the Company expects to reduce its overall
indebtedness to approximately $120 million, down from $254 million. It will also
reduce annual interest expense to approximately $13 million from the current $29
million.

"Today's agreement with GE Corporate Lending represents another significant
milestone in the reshaping of Danka," said A.D. Frazier, Chairman and Chief
Executive Officer. "This credit facility, along with the other important
financial and operational steps we have taken in the past year, will provide
Danka with the appropriate long-term flexibility from which to grow our
business. It also reaffirms the Company's commitments to our valued vendors and
existing customers, and significantly enhances the ability of our talented team
of employees to compete for and win new customers, as well as deliver even
greater value."

The new credit facility includes a $40 million Senior Secured Revolving Credit
Facility, a $60 million Senior Secured Term Loan and a $45 million Second Lien
Loan.

Completion of the financing is subject to a number of customary closing
conditions. The Company expects the transaction to close by June 22, 2007.
Representing Danka in the transaction was the investment banking firm Houlihan
Lokey and the law firm Skadden, Arps, Slate, Meagher & Flom.

- ends -

For further information please contact:

Danka Business Systems PLC
Cheley Howes, Danka Investor Relations [phone]
Louis Kritzinger, Danka London 0207 605 0150

Weber Shandwick Financial
Georgia Dempsey 0207 067 0749



This information is provided by RNS
The company news service from the London Stock Exchange

END

[boxer beat] 16/1/2008 16:47

Chancer

can you please explain the following :

"current mkt cap is now just 67m inc. the debt"

Debt stands at £235 MILLION. So how have you come to the conclusion that the market cap is £67m INCLUDING DEBT ?

Enterprise value stands at a massive £245 MILLION (Market cap + debt).

[chancer6] 16/1/2008 16:40

dell314 - 16 Jan'08 - 16:40 - 1430 of 1430 (Filtered) - YAWN sad loser who must have wasted his life away on here for 6 years now.

[dell314] 16/1/2008 16:40

Chancer - Here is what DNK had to say about their debt in the last results:

Indebtedness-At 30th September, 2007, the Group had consolidated indebtedness of $467.9 million, including current maturities of long-term debt and notes payable of $23.4 million. The Group's indebtedness includes $119.5 million of indebtedness under its credit facilities with General Electric Capital Corporation ('GECC').

The amount of the Group's indebtedness could have important consequences to
Danka, including the following:

• use of a portion of the Group's cash flow to pay interest on its indebtedness
will reduce the availability of its cash flow and liquidity to fund working
capital, capital expenditures, strategic initiatives, restructuring and other
business activities, including its ability to keep pace with the
technological, competitive and other changes currently affecting the industry;

• increase the Group's vulnerability to general adverse economic and industry
conditions;

• limit the Group's flexibility in planning for, or reacting to, changes in its
business and the industry in which it operates;

• limit the Group's ability in making strategic acquisitions or exploiting
business opportunities; and

• limit the Group's operational flexibility, including the ability to borrow
additional funds, access supplier credit lines, or dispose of assets.

The credit agreements governing the Group's financing agreements contain
customary financial covenants with which the Group must comply on a quarterly
basis relating to its leverage ratios, fixed charge coverage ratio, cumulative
earnings before interest, tax, depreciation and amortisation as measured under
U.S. generally accepted accounting principles ('EBITDA') and an annual capital
expenditure threshold.

The borrowing base related to the new financing arrangements with GECC is
subject to certain multiples of adjusted EBITDA as more fully described in the
credit agreements and, therefore, the cash availability that the Group has under
the financing arrangements is reliant on the Group meeting these adjusted EBITDA
multiples.

Rgds
dell

All IMHO, DYOR etc.

[chancer6] 16/1/2008 16:40

400,000 shares buyer at new year's eve at 3.10p is still holding and all those 100K buyers...since christmas any sell have been 50K or below. Panic sellers with the bad market out there. It's all there evident on the trades page...if you don't like it then then move on and buy stocks like My Travel which had even more debt.

[chancer6] 16/1/2008 16:10

sdt....look at everything that has got battered this wk...Q3 results out next month and DNK could be back in the black by Q4 and current mkt cap is now just 67m inc. the debt...imo too undervalued with their turnover.

[sdt7618] 16/1/2008 16:03

Chancer6 - 16 Jan'08 - 11:19 - 1418 of 1424


FTSE down by another 83pts...and DNK still holding well...little positive signals have been appearing lately.


DNK Bid: 2.15p Offer: 2.7p Change: -0.55

don't see this drop as positive almost 20%, holding but worrying!

[chancer6] 16/1/2008 15:48

Jeez some shake on the bid with the general market malaise.....and spread wide...EVO on 2.70p offer, then JEFF on 2.75p, then 50K at 2.80, KBC on 2.90p, and WINS on 3.25. Nothing come through on PLUS.

[chancer6] 16/1/2008 14:49

50k appeared on the order book at 2.80p.

[chancer6] 16/1/2008 13:32

No trades on PLUS since this morning and IMO again a little positive signal of how no selling in DANKA even when markets in turmoil.

[chancer6] 16/1/2008 11:54

ARGY2 - 16 Jan'08 - 11:43 - 1419 of 1419 (Filtered)

[chancer6] 16/1/2008 11:19

FTSE down by another 83pts...and DNK still holding well...little positive signals have been appearing lately.

[davidlloyd] 16/1/2008 10:45

Good Luck.

DL

[chancer6] 16/1/2008 10:36

David - I've done my research thanks...company with the debt now valued at just around 70 million only. Already called it right once when the price rose to 4.75p but holding out for 7-8p.

[seanmiller] 16/1/2008 10:31

DavidLloyd, you are now abouut to be fitered lol

watch and learn

[davidlloyd] 16/1/2008 10:30

Chancer6,

Careful here. Danka are sitting on a very large debt and have shrinking income - ergo could be problems servicing the debt (IMO) - it already looks touch and go to me...Certainly a short term play but it could easily go south....permanently that is.

Stay lucky.

DL