Sig Share Discussion Threads

[elongate] 05/11/2021 20:59

Good evening friends.

Some detail on what has happened. All squared up for the future. Locked in a favourable interest rate. Cash on balance sheet (aiming at £100mil ) It will also have reset other matters, including company leverage restraints imposed by lenders on dividend payment. More on that from them later, possibly not before EOY.

Immediate benefit is cost reduction, stability and thus institutional investability.

‘The success of this transaction enables us to refinance our existing facilities well ahead of their maturity dates and on more attractive terms. Together with our New Revolving Credit Facility, the Notes further improve the Group's financial flexibility by extending the maturity profile of the Group's borrowings and increasing its available liquidity’

A €300 million five-year (non-call two-year) secured bond issue, tradeable in the market, to reset capital structure.

Proceeds from the bond deal will be used to refinance £131 million in private placement notes and £70 million in term loans, as well as provide £31 million cash on balance sheet. Plus a new £50 million 4.5-year super senior revolving credit facility.
Banks are guiding investors to expect ratings of B+/B1.( highest quality speculative )
The company generated last-12-months to June 2021 revenue and EBITDA of £2.14 bil. and £74 mil. respectively.
Pro forma the transaction, total leverage stands at 3.1x based on annualized EBITDA of £98 mil.

[elongate] 05/11/2021 08:35

You’ll be queuing up to thank me this time next year. Metaphorically of course.

[elongate] 05/11/2021 08:22

This will provide a strong base from which to drive forward our "Return to Growth" strategy, which has delivered notable improvements in growth and profitability to date, and which we are increasingly confident will continue to deliver value for all stakeholders in the near and longer term.

That’s the nub of it. New phase starting.

[elongate] 05/11/2021 07:57

Obvious wasn’t it. Ahead of the game.

[elongate] 03/11/2021 15:37

You disagree with that, Mr.Small Mind? If so, have your name say why on here.

[elongate] 03/11/2021 15:19

Good move by the company, they’ve worked it out, being read by idiots as bad.

Sig is not in distress, read the relevant RNS, and seeks to be in a position to better and more consistently in the future manage and leverage debt for the purpose of growth.

Lest people get the wrong idea, what is happening is this - Investopedia, but sufficient for the purpose.

“Corporate refinancing is the process through which a company reorganizes its financial obligations by replacing or restructuring existing debts. Corporate refinancing is often done to improve a company's financial position. Through refinancing, a company can receive more favorable interest rates, improve their credit quality, and secure more favorable financing options. It can also be done while a company is in distress with the help of debt restructuring.”;

[elongate] 03/11/2021 08:14

In the year to 31st October 2020 Penlaw made a pre-tax profit of £1.6m (2019: £1.7m) on turnover of £33.9m (2019: £40.6m).

[elongate] 02/11/2021 21:23

ElonGate is deeply distressed by the thumb down mafia. I cannot console him.

[skinny] 02/11/2021 19:21

I wouldn't take it personally - some threads are plagued by the dreaded "down marker" - a sad indictment of the world in which we live.

[peteret] 02/11/2021 19:07

Good post thanks

[elongate] 02/11/2021 17:06

Just trying to help. Marking me down. Horrid person.

[elongate] 02/11/2021 16:42

Penlaw. It’s a fact.
hxxps://www.buildersmerchantsjournal.net/sig-buys-penlaw-company/

[zho] 02/11/2021 13:46

New Company Presentation at

[hamhamham1] 02/11/2021 07:44

I have a 3 yr target here of 150p. Happy holder.

[elongate] 01/11/2021 15:07

To be fair, you’re not on your own, or the price wouldn’t be dropping back.

[elongate] 01/11/2021 14:59

Nobody here gets it. Leverage. Fill in the gaps in coverage. More revenue. Economies of scale. More profit.

[elongate] 01/11/2021 08:16

You don’t like it? I do.
New board, new strategy, more than on plan.

[elongate] 01/11/2021 08:08

‘platform to support its strategic growth ambitions into the medium term.’
New stores, limited acquisitions.

[elongate] 28/10/2021 22:09

They’re being horrible to me.

[sooty snipes] 28/10/2021 19:51

ElonGate. Just to say I didn't mark you down. Cheers and good luck Sooty

[elongate] 28/10/2021 10:02

Shi doing better than tp on same period updates.

[zho] 28/10/2021 08:59

Travis Perkins (TPK) Q3 TU appears to be positive:

"Continued positive trading momentum; increasing 2021 earnings guidance"

"End market demand remains robust ..."

[zho] 28/10/2021 08:44

"SIG plc today announced the acquisition of Penlaws (www.penlaw.co.uk). Penlaws are predominately a drylining / interiors specialist, with three branches in London, one in Norwich and one in Warrington...."

This is from a post on the LSE board yesterday afternoon but I can't find anything to back it up. Has anyone heard anything?