Raven Prop 6.5 Discussion Threads

[stun12] 30/4/2020 15:02

Just checking the Articles of Incorporation (2017) to see what percentage they need to get his deal through. From page 56:

"Whenever the capital of the Company is divided into different classes of shares, all or any of the rights for the time being attached to any class of shares in issue may from time to time (whether or not the Company is being wound up) be varied in such
manner (if any) as may be provided by those rights or with the consent in writing of
the holders of three-fourths in nominal value of the issued shares of that class
(excluding any shares of that class held as treasury shares) or with the sanction of an special resolution passed at a separate general meeting of the holders of those
shares."

So 75% then, of which they have 71.9% pledged.

[davebowler] 28/4/2020 14:46

Terrible deal.

[bench2] 24/4/2020 14:37

Wow , I was thinking of switching my Ords and 12% Prefs into the 6.5% Cv Prefs , because the redemption yield was so attractive ...... plus a free ride on the Ords if they were to exceed the conversion price , and we ranked in front of the 12% Prefs . So glad about the sunshine as it has kept me away from doing anything ....... It just shows what can happen when things get difficult ....... great for the Ords and Pref holders , but not fiar for Cv Pref who have lost their redemption back stop .

[gfrae] 24/4/2020 14:18

I agree with you tradertrev, clearly Quilters take a different view. Though I think this is a bad deal for RAVC which I have recently bought because ,like you,I thought they were by far the most attractive of the three. It is good for the ords though,which I also hold.

[tradertrev] 24/4/2020 13:01

As of a few days ago I thought RAVC was the most attractive risk/reward play of RAV's capital stack. Now we are being taken out in a nil premium paper swap for the less attractive instruments. The removal of the redemption liability does however improve the risk profile of both remaining instruments in the medium term.

[gfrae] 24/4/2020 11:38

Market does not like terms, RSP price prior to announcement was 87p bid and 90p offered now it is 82p bid and 89 offered. So far as I can see price of Ords and Prefs not changed.

[tradertrev] 17/3/2020 10:18

Call me a nutter if you like, but I just dipped a toe in at 88p. I estimate a redemption yield of 16.3% (or just under) for the 6.25 years to run with a free conversion option. Higher up the stack than the ords and the straight prefs. Not bad for the ISA.

[davebowler] 11/3/2020 08:24

Bought some more.

[bench2] 09/3/2020 19:03

Offered at 97.5p this afternoon

[nerja] 06/2/2020 16:32

Yieldsearch, thanks for the info for this, dipped my toe!

[tiltonboy] 19/1/2020 10:40

Thanks for the background info. Had a little nibble at 105p on Friday.

[my retirement fund] 16/1/2020 15:34

....ords comfortably north of a quid!!

[my retirement fund] 16/1/2020 15:33

These could easily convert 1.8 ratio with the ords at a comfortably one day!

[montyhedge] 16/1/2020 15:32

Raven 12% Pref much better buy.

[my retirement fund] 16/1/2020 14:44

Still incredible value at 1.06 to buy

[igbertsponk] 16/1/2020 09:24

Worth a read. These convertibles may become the best performers of the RAV classes if all that comes to pass.

[renewed1] 14/1/2020 11:50

What are the Ex d dates for this please.

[catsick] 11/12/2019 07:20

Buying these back at 92.5 is great for the conpany, they make a nice profit vs where the liabilities are on the balance sheet, they are getting an irr of over 10pct on the interest plus redemption kicker and there is less dilution from the convert

[davebowler] 03/12/2019 13:03

This will help NAV and therefore the prospects for a profitable conversion for us holders in later years -

[ramellous] 02/12/2019 12:42

Ok ,picked a few up at 1.044 for upcoming ex div 👍

[yieldsearch] 02/12/2019 12:25

Stun12: thank you, you are right that the ravc should gradually trade toward the 1.35, pls see below:
RAVC was issued at 1.00 on the 7/7/2016
Ravc right of capital is increase by 3.5p per completed 12 months and proratat for the 12months.
using 7/7/2016 and today, i am calculating 3.40 years of accrual, implying 11.92 pence above the 1.00 issue price.
So if RAV is wound up, taken over, etc, today, the RAVC holder would be entitle to £1.1192 per shares. versus most recent trade at 1.0444

[stun12] 02/12/2019 11:46

Thanks, Yieldsearch. A full and clear explanation. Mine are indeed in a SIPP and the 2026 redemption option was the kicker for me. One other point is that you would expect RAVC to gradually amortise upwards towards the 135p price over time to keep the total return tom maturity at least reasonably consistent. Clearly, this is not the case currently with the Woodford overhang still keeping the price depressed.