registerme
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Post by registerme on Feb 26, 2019 11:09:13 GMT
I've only had a skim read of the prospectus but one question jumps out at me. Why does such a seemingly successful company need to borrow at such high rates?
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Post by ablrate on Feb 26, 2019 11:24:05 GMT
I've only had a skim read of the prospectus but one question jumps out at me. Why does such a seemingly successful company need to borrow at such high rates? They are a young company creating a consolidated group and their plans will allow them to create value as a listed company, well beyond the rates charged. It should not be underestimated also that the ability to raise funds from our lenders relatively quickly carries a premium which we always make clear to borrowers.
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hazellend
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Post by hazellend on Feb 26, 2019 11:34:19 GMT
Yes, but for example, a large P2P company who we will call Funny Cactus seems to lend to any rubbish company at lower rates and fast so it still seems odd to those of that don't understand it all.
It looks like a good prospect, but is it really that difficult for good companies to borrow money at the moment?
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blender
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Post by blender on Feb 26, 2019 11:39:58 GMT
It's really good to have a completely new borrower on the platform. Clearly a lot of work has gone into the assessment. So we should welcome this opportunity.
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metoo
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Post by metoo on Feb 26, 2019 11:42:37 GMT
a large P2P company who we will call Funny Cactus seems to lend to any rubbish company at lower rates Funky Cactus require a 2 year trading history, whereas this co was recently incorporated.
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Post by ablrate on Feb 26, 2019 11:43:55 GMT
Yes, but for example, a large P2P company who we will call Funny Cactus seems to lend to any rubbish company at lower rates and fast so it still seems odd to those of that don't understand it all.
It looks like a good prospect, but is it really that difficult for good companies to borrow money at the moment?
Each situation is negotiated... we explain what our lenders and we expect and we issue a term sheet. I know it seems counter intuitive, the reality is that companies are not necessarily talking to multiple companies to get the best rate possible, a lot of it is relationships and they just want to get on with the job. As we have seen with other lenders, when they have completed the deal contemplated by the loan, that is when they look to re-fi us out of the transaction, which is why we have minimum periods.
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registerme
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Post by registerme on Feb 26, 2019 11:48:18 GMT
I think I also saw a "no Brexit risk" comment in the prospectus, which surprised me because of some of the group's international customers. I might be able to understand "Brexit risk is a wash", or "We're x's only supplier globally and they will have to eat any possible tariff costs", or whatever really, but to just say "No Brexit risk", hmmmm.
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hazellend
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Post by hazellend on Feb 26, 2019 12:10:51 GMT
Yes, but for example, a large P2P company who we will call Funny Cactus seems to lend to any rubbish company at lower rates and fast so it still seems odd to those of that don't understand it all.
It looks like a good prospect, but is it really that difficult for good companies to borrow money at the moment?
Each situation is negotiated... we explain what our lenders and we expect and we issue a term sheet. I know it seems counter intuitive, the reality is that companies are not necessarily talking to multiple companies to get the best rate possible, a lot of it is relationships and they just want to get on with the job. As we have seen with other lenders, when they have completed the deal contemplated by the loan, that is when they look to re-fi us out of the transaction, which is why we have minimum periods. Ok, I’m in
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andy1
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Post by andy1 on Feb 26, 2019 12:11:30 GMT
I like it. New borrower with businesses that generate cash to pay interest, a plan to get out with an IPO and management who've done AIM listing before.
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Post by Badly Drawn Stickman on Feb 26, 2019 12:27:08 GMT
I think I also saw a "no Brexit risk" comment in the prospectus, which surprised me because of some of the group's international customers. I might be able to understand "Brexit risk is a wash", or "We're x's only supplier globally and they will have to eat any possible tariff costs", or whatever really, but to just say "No Brexit risk", hmmmm. It would be silly not to factor in 'World events'. Oddly I am more inclined to be silly with this loan than most. My home city was built on engineering firms, real people making real things, must be something ingrained in my DNA but this is the kind of venture I feel deserves my support. I will be a long way short of the 1.2 million but my heart will overrule my head with this one. Does also help that there are copious documents telling you what you are investing in.
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nick
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Post by nick on Feb 26, 2019 13:11:19 GMT
I've only had a skim read of the prospectus but one question jumps out at me. Why does such a seemingly successful company need to borrow at such high rates? If anything, I think the rate is a bit on the low side given the risks, ie execution risk associated with the proposed acquisition, integration with the existing businesses and planned float in what are likely to be difficult capital markets in the near to medium term. On the plus side, the team leading this are bit hitters and seem to have a proven track record in bring companies to market. I really see this as a punt on the shareholders driving the consolidation strategy and the underlying management team. Anyway, nice to see a new borrower and different type of offer and risk profile. ablrate : I think there are formatting issues with the P&L figures given on p11 of the borrowing proposal doc - the numbers are displaying a gobbledygook of text. I though it might just be my PDF viewer, but I've tried opening it on another PDF viewer on another PC and get the same result?
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registerme
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Post by registerme on Feb 26, 2019 13:12:48 GMT
ablrate : I think there are formatting issues with the P&L figures given on p11 of the borrowing proposal doc - the numbers are displaying a gobbledygook of text. I though it might just be my PDF viewer, but I've tried opening it on another PDF viewer on another PC and get the same result? Yep, same here.
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Post by ablrate on Feb 26, 2019 13:14:53 GMT
ablrate : I think there are formatting issues with the P&L figures given on p11 of the borrowing proposal doc - the numbers are displaying a gobbledygook of text. I though it might just be my PDF viewer, but I've tried opening it on another PDF viewer on another PC and get the same result? Yep, same here. Thanks will take a look and fix It looks OK on all our systems. It is written in Adobe DC.. sorry, but could I ask what Adobe reader version you are using. We may be able to save for older versions.
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registerme
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Post by registerme on Feb 26, 2019 13:29:34 GMT
ablrate "Cannot find or creat the font 'ConcourseT3', Some characters may not display or print correctly". Adobe Acrobat Reader version 2019.010.20098 hmm for some reason I can't insert an image. Here's an imgur link:- imgur.com/a/I3EUae0
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nick
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Post by nick on Feb 26, 2019 13:40:29 GMT
ablrate "Cannot find or creat the font 'ConcourseT3', Some characters may not display or print correctly". Adobe Acrobat Reader version 2019.010.20098 hmm for some reason I can't insert an image. Here's an imgur link:- imgur.com/a/I3EUae0 ablrateExactly the same issue. Version 2019.010.20098 is the most up to date version. I tried opening the files with a couple of online PDF readers with the same issues - I assume it is any issue with the particular font not being widely deployed.
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