Spot EIBOR today is 5.034%
Spot SOFR, yesterday 5.33%
I don't know if the debts are priced off spot, 3 month or 1 year, but the curves are similar. There will be a cost to hedging, and in as much as there will be some costs in the local currency I don't think they should hedge it all.
The September rate cut will knock 25bp off the debt payments prior to the transaction closing. |
"The loan will have a tenor of five years". Sing it loud! |
Today they state:
"As we have made an early settlement towards our debt last week, our current net debt is USD 234 million, down from USD 267.3 million as of December 31st, 2023.
On 13th May they stated:
"The Company is also pleased to report that it made an additional prepayment of USD 5.0 million towards its debt repayments in the last week, reducing net debt to USD 250.4 million."
A reported 16.4m reduction in 80 days. |
The RNS I know a lot of shareholders have been waiting on. Good news. Debt being reduced at a rate of $6 million a month so by year end it will be approx $205 million and under 2x Editda in Feb/ March 2025.
Hope they don't buy any more vessels and concentrate on shareholder returns instead. |
Another fantastic RNS... :) |
@rivetest Absolutely.Cadeler/seajacks is doing very well from ofshore wind instalations-they got handful of larger newbuilds joining the fleet during next few years+super bullish guidance
GMS ability to get bank debt for vessel repurposing (if that is needed) appears low at this point (hey where is that debt refi they have been talking about?).At same time middle east O&G driller Ades last week secured an insane $3b fresh debt for growth & acquisitions! |
Low volumes. |
They don't need to be re-purposed, hence why the Endeavour is off Lancashire doing just that. It's great to have that as purpose going way into the future. The greater shipping industry has a history of massive over expansion in every single sector. In some cases, like multiple sub-sectors within the oil complex, some vessels ordered at the peak of the oil bubble in 2006 hardly saw revenue service. Because they are long lived assets they hang around depressing rates for years, and all owners go bankrupt or close to eventually. So it is always a risk, but at the moment not one that is apparent.
Summer doldrums here and in other shares. I have no idea who is hitting the bid in this period of reduced liquidity. Broker forecasts for this year and next have been gradually creeping up. |
No risk of overcapacity if the self propelled jack-ups are repurposed for building windfarms. |
Looks like Paul Scott is sponsoring, if that is the correct word, GMS. Mark Simpson (Small Cap Value Report) has not historically been a fan seeing the self-propelled jack-ups as wasting assets with a 20 years life. The evidence though is that oil services assets have a much longer life than that, in this case probably as long as HC are produced in the Persian Gulf. A well maintained rig with sacrificial anodes has an almost infinite life so far as the super structure is concerned, especially in the benign conditions of the Gulf. There is no super efficiency gain in newer units. Indeed with inflation the cost of new unit would make it extremely uncompetitive with existing fleets. The danger ever is over capacity. |
Join us for a jam-packed MelloMonday tonight from 5:00pm with Stockopedia favourites Paul Scott and Mark Simpson both joining us on the BASH when GMS will be one of the companies analysed. The programme for the evening is as follows:
5:00pm Interview with Investor and Ex-Schroders Fund Manager, Iain Staples
5:30pm Company presentation from TEAM plc
6:00pm Company presentation from Velocity Composites
6:30pm Trading update from Time Finance
6:45pm Educational Presentation
7:00pm Company presentation from Coral Products
7:40pm BASH (Buy, Avoid, Sell, Hold) Panel featuring Iain Staples, Paul Scott (GMS) and Mark Simpson (CAU)
For more information, click here:
There are lots of interesting sessions and all annual pass holders and individual ticket holders will be sent a recording of the show within 48 hours of registering. For half price tickets, use code MMSTOCKO50. |
I wonder why seafox had to time it now to make things worse....almost as if on purpose.This overhang is here to stay for atleast a year in my view.NAV doesn't matter in this case |
Reckon it's warrant selling.
£180m market cap, $190 million debt. Editda with rising rates and falling interest payments of nearly $100 million pa.
If they hit their targets in 5 months the NAV will be 25p - share price 16p.
Crazy cheap. |
Tree shake I reckon |
200dma at 16.5.
There's a whiff of momentum trading. |
Surprised to see this weakness. Bought more...can't help myself! |
Personally I would think all Seafox's shares are for sale at a price they deem acceptable. I shouldn't really have to say this but every share is available for the right price. Mine certainly are, for 40p in 18 months time.
This is GSKs language from a sell down of its Haleon stake in October last year:
GSK and Pfizer, Inc. (which holds a 32% stake in Haleon), have each undertaken to BofA and Citi not to dispose of any shares in Haleon for a period of 60 days after the date of settlement of the Offering, subject to certain customary exceptions and waiver by BofA and Citi.
I would say customary exceptions cover a bid approach and that the language difference is because Seafox is a private Dutch company that isn't used to any stock market. It is also clearly a bit of a come on to someone who might be running the rule over it from a PE angle. |
@tourist2020 - i have seen the standard lock-up disclaimers saying no selldown for x number of days/months,i was more interested in the (11) clause
@hpcg yet to come across clause ii in my quick google search yet although i have seen other disclaimers which relate to options etc.Maybe i haven't searched hard enough and there isn't much to read through.I wonder what they do post the lock-up period though |
More specifically yes and no. Most lock-ups relate to founder-sellers and they don't necessarily have the item (ii) language in. For third party sellers then yes it allows for a sale on an offer. |
Gen_romer, yes .... the number of days may vary but usually there is some kind of lock up clause. It is so that there is no competition with what Zeus may be doing with the placement shares. |
"Seafox has undertaken to Zeus that it will not, for a period of 75 days from 30 June 2024, dispose of any further Ordinary Shares, save in the scenarios where (i) GMS undertakes a share buyback and (ii) an independent third party announces a possible offer for GMS"
Is (ii) standard clause in these placement offerings? |
Nice report out by zeus who visited one of the rigs in port being resupplied, currently being used to service wind farms in the north sea, it highlights how well run the company is operating this highly specialised fleet, they have a 28p target for the shares which is a shade above where the year end nav should be, I don't see a lot of downside and am adding at these bargain prices as a result of the recent block sale |
too my knowledge, Fiera are not typically a small cap investor. they have a small/mid cap fund but you won't typically see sub £200mm names in there...
I view this is highly encouraging...when you see a big house like Fiera (or likes of Fidelity etc) venture outside their typical hunting grounds, its a sign that they have done some extensive work in trying to justify a riskier position that they think has lots of upside...
very good. |
There's the new holding RNS, Fiera Capital at a touch under 3.5%. |
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