Volex Share Discussion Threads

[opodio] 21/6/2014 18:56

The Company has entered into an amendment letter dated 11 June 2014 with Lloyds TSB Bank plc, HSBC Bank plc and Clydesdale Bank PLC its lenders (the "June Amendment Letter"). Under the terms of the June Amendment Letter, the terms of the Company's existing revolving credit facility (the "Facility") will be amended to limit the available facility to up to US$45.0 million (previously US$75 million) and extend the termination date from 15 June 2015 to 15 June 2017. In addition the Company has negotiated revisions to its financial covenants and interest rate margins. In consideration of these amendments, the Company will pay its lenders a work fee of US$0.3 million, and prepay US$25.0 million of its outstanding bank debt. The June Amendment Letter is conditional upon the Placing & Open Offer completing.


Price would have crashed if they had said they had breached covenants and not had the placing. They are going to have a smaller 45m facility and be up against the toilet pan

[tom111] 21/6/2014 15:17

In for a penny in for a pound may as well take them up surely cant go down much further.

[cockneyrebel] 20/6/2014 16:47

I think some of these trades are funds acquiring to get in on the open offer - probably from those stale bulls that have been holding a while.

CR

[don777] 20/6/2014 16:43

can any bods of VLX afford to pay £1.74M to buy that amount of VLX shares?

[imastu pidgitaswell] 20/6/2014 16:41

Director Buy...

;-)

[don777] 20/6/2014 16:41

2.178M, that's more than 3% changed hand.

[cockneyrebel] 20/6/2014 11:21

Directors seem very keen to load up - just a month before the interim management statement.

All imo/dyor etc.

CR

[ferrism] 20/6/2014 10:09

I'd go for 2) imastu. Small enough purchases not to worry the average Director but large enough to convince us to accept the offer..... and you said you were cynical!

[andyview] 20/6/2014 09:09

A lot of confidence shown by the directors here, I'll be taking my allotment as things stand. It's possible the trading has continued to improve as per their earlier rns's....bodes we'll IMHO.

gla

[imastu pidgitaswell] 20/6/2014 08:35

Exactly - the placing was only for existing holders, i.e. those holders before 8am on 12th June. Anyone buying now doesn't get the rights - although it makes little practical difference as the 75p right sprice is so close to the current price (thanks to our City leak friends).

So the directors buying is not part of the placing/open offer, just them either 1) eyeing a cheap opportunity; or 2) engaging in a quasi share-support operation...

I am a cynic, but I do still believe it is 1). But I'm very biased, and after last night's fiasco in Sao Paolo, one needs to take hope where one can get it...

[johnwall] 20/6/2014 07:50

More Director buys this morning. I wonder why they didn't/couldn't buy in the Placing, although I see the three Directors who already owned shares are taking up their rights under the Open Offer.

[imastu pidgitaswell] 19/6/2014 16:56

It does - but they do all the allocation and subscribing stuff beforehand, so that if approved, it's all done and dusted the next day:

"The Placing & Open Offer is conditional on, among other things, the approval of Shareholders at a General Meeting to be held at 10.00 a.m. on 1 July 2014. Details relating to the General Meeting will be contained in the Circular to be sent to shareholders. If the Resolution is passed and the other conditions to the Placing & Open Offer are satisfied, it is expected that dealings in the New Shares will commence at 8:00 a.m. on 2 July 2014."

[tom111] 19/6/2014 16:26

Strange it has to be passed at a meeting on the 1st july

[imastu pidgitaswell] 19/6/2014 15:04

Just received my invitation to subscribe to the 4 for 11, with cost fixed (75p a share). Quite a lot of small holders, I suspect, will not subscribe, as it's not much of a discount to the current market price - if you want more just go and buy them.

Different story had the current price been around 100-110. But then that's why 100-110 is not the current price, of course...

[cockerhoop] 19/6/2014 14:12

Tom, Jaknife,

Yes, sorry my terminology slightly off but holders are entitled to apply for 4 further shares at 75p for every 11 they hold.

[mustinm] 19/6/2014 13:22

4 new shares for every 11 existing

[tom111] 19/6/2014 12:40

the only way to find out is check with the broker how many shares u are entitled to. Qualifying share holders will get the Prostectus

[mustinm] 19/6/2014 11:46

Director shareholdings are buying in the open market and have nothing to do with the shares purchased as part of the raising (through their Open Offer entitlement).

[opodio] 19/6/2014 10:47

The directors will probably pay themselves a bonus for getting the rights issue away, using the rights money

The buying will be paid for by the bonus i guess

[gripfit] 19/6/2014 10:23

nmf777,,,,, 12" is a foot . ;o))

[cockerhoop] 19/6/2014 09:25

Call me a cynic, but isn't the director buying a co-ordinated share support operation to help the Rights Issue/Placing get off successfully. Surely the directors could buy any shares they'd like at the 75p placing price.

That said I do have a modest holding here (and plan to take up my rights) as medium term I think the Risk/Reward is favourable.