Regional Reit Share Discussion Threads

[hpcg] 04/3/2024 13:40

Good points WC. The risk with RGL1 is then not capital but return. What is on offer is worthless (you know what I mean) if it takes a 18 months to get back rather than 6. The other genuine question is how much an administrator takes out, or the board / management in a wind-up, how long it takes, and what it can get versus current NAV when everything is shopped at once.

What I, and I imagine others are saying, is not that the company is bankrupt, but that its capacity to pay any meaningful income to investors is severely curtailed.

[rcturner2] 04/3/2024 13:05

"The Company continues to explore actively a range of refinancing options for the £50m retail bonds and it looks forward to providing an update in due course."

[williamcooper104] 04/3/2024 12:57

If Edison isn't quite a sock puppet then at the very least they'll have talked to the RGL and if a rights issue wasn't being considered they wouldn't have written so much about it

[williamcooper104] 04/3/2024 12:55

The underwrite would be expensive and with the underwriters hugely discounting the issue and only after having soft sold all of it

[williamcooper104] 04/3/2024 12:54

There's a huge market in prefs for US REITs If you are going to have secured debt then it's better to have prefs than unsecured debt

[williamcooper104] 04/3/2024 12:52

Don't see why the unsecured would take a haircut - on an admin it's highly likely they get out whole But equally can see shareholders taking same view - better just to get some cash back from liquidation than put more money in The fear of dilution isn't there if you know other shareholders are in same place Which is why IMO that's the most likely outcome

[cc2014] 04/3/2024 11:25

By way of example, assuming £75m of new share issuance at a 50% discount to the market price of 21.0p per share suggests a theoretical post-issuance price of 14.9p

[spectoacc] 04/3/2024 10:10

Tough to run shorts (something I've never been on RGL due to the divi) when PI's can easily push it up 50% for any reason or none.

Agree on bond point.

Agree Edison floating RI on behalf of RGL, but getting a rescue rights away whilst also repaying £50m bond whilst also promising/trying to raise £60m from sales whilst also ending up with an LTV still at 40%?

All in a sector that's structurally challenged.

If they can ditch the 20% that's empty, or we wander into an economic boom, then RGL would have a chance. A RI seems only to buy some time.

What cost to underwrite it?

[hindsight] 04/3/2024 09:48

CC2014, why will bondholders take a haircut. Equity has to be zero first and its £100m from that
But expecting bondholders to have an equity offer as well as cash

[hpcg] 04/3/2024 09:34

Edison is paid for research. It is difficult to believe the suggestion hasn't come from the company.

[cc2014] 04/3/2024 09:32

My view is Edison have decided to write what they think regardless of it being paid for research because the situation is not just ridiculous given the declaration of the dividend.

The thought has run through my head that the dividend will shortly get cancelled.


I would guess in order to do any form of restructuring the unsecured bond will take a haircut else why would a rights issue work.


We will see in due course.

[williamcooper104] 04/3/2024 09:23

Paying a divi such that management have some cash to put back in when the rights issue comes

[williamcooper104] 04/3/2024 09:22

If you want to see what a rights issue might look like - look at HMSO Let's just say it would be a rights issue with a share consolidation

[hindsight] 04/3/2024 09:20

No surprise and will be open to bond holders too

[nickrl] 04/3/2024 09:19

New intraday atl yielding a tasty 26.6%.............

So was Edison article fed by Inglis and co to test the waters or have Edison gone native and finally realised this is on a one way trip to oblivion and they no longer want to be associated with it.

Why they didn't cull the dividend remains a mystery and if they do a share raise now its going to be heavily diluted anyhow.

[spectoacc] 04/3/2024 09:01

Wow. Edison cheerlead RGL all the way down, now say equity raise?

"Something" has to happen at RGL, but market cap now below £100m, and:


" For example, a £75m equity raise in combination with £60m of assets sales would immediately reduce LTV to 40%..."


Assuming a 50% discount on the RI, it'd be more than a 1:1, yet RGL would still have an LTV of 40%?

Good luck with that.

[cc2014] 04/3/2024 08:58

So, the question remains as to why the Board are paying a dividend?

And who is going to put in a bunch of equity in a rights issue just to pay off unsecured bond holders?

[mrwaterloo] 04/3/2024 08:45

Probably don’t like the look of the rights issue suggested by Edison…

[cc2014] 04/3/2024 08:12

This is alot of selling for first thing on Monday morning. Someone certainly wants out in a hurry.

[master rsi] 29/2/2024 14:38

Surprise, surprise we are UP for the day, yes thee share price is -0.85p but today the share price has gone X-divi by 1.20p and so far we have recouped 0.35p.
And about time the last couple days of the mark-down.
I wonder if some Institutions did not want to get the Dividend

note: Ex-dividend date 29 February 2024 -- Pay date 05 April 2024

[cielos] 27/2/2024 09:35

>>> nickrl

Alternative measure is : Throwing YOU under the bus.

[nickrl] 26/2/2024 20:52

@solerno alternative measure is 90% down from high!

[solarno lopez] 26/2/2024 15:07

And up 25% from its low !

[panshanger1] 26/2/2024 15:04

Plenty of volume today