IPF £78m - 14/12/23
If interested, IPF posted interims yesterday. It is an interesting read, especially the Going Concern piece. Board very conscious of the requirement to refinance the near €400m eurobond due 7/4/21. It is a big bite in one go for IPF. I am not a holder but it will be interesting to observe.
Comments
Curiously the half year results were on Tuesday but the share price didn't get really whacked until Wednesday suggesting to me the seller had a long think about it or was slow to act, or maybe the MM tried to shift them Tuesday but didn't and then moved the price down.
The outcome here depends on whether there are more impairments to come and/or at what level and that's hard to estimate with the information available to me. With collections now at 96% of pre-Covid albeit on a smaller loan book the fall in price looked overdone to me but unless you have some detailed insight into the impairment numbers it's all a bit of a gamble.
You may have bought well Jammy
Just two comparators...
PFG Mkt Cap - £570m PF21 - £65m due 27/09/21
IPF Mkt Cap - £136m EMTN - €397m due 07/04/21
Of course, there are others..
Can't see this being done by IPF without a rights issue.
Net assets £389m at end of June. Not sure if it's grown by £45m since then or not as the £45m cash from the long term legal case may or may not have been accrued forin profits, either in full or in part.
They will need some of that cash for working capital but it doesn't seem unreasonable to suggest the 392m euro bond is renewed at 350m, 325m or even lower.
Clearly the 392m euro 2021 bond isn't going to get renewed at 5.75% which will hurt profits but rights issue looks unlikely
https://www.londonstockexchange.com/news-article/IPF/launch-of-exchange-offer-and-consent-solicitations/14718953
https://www.londonstockexchange.com/news-article/IPF/q3-2020-trading-update/14718861
https://www.ipfin.co.uk/en/investors/consent-solicitation-for-bonds.html
I'm really out of my depth here but would guess the new interest rate on the Eurobonds won't be pretty. 10%+?
I bought some more IPF2 this morning and will be happy to accept the 0.5% for my consent.
Ref the 0.05% bribe to assent how and when is this paid. ? Thanks everyone for replies.
Who knows what HL or Youinvest will do, but I'm not sure they can do anything yet as the rate on the roll on the Eurobonds hasn't been decided yet, so strictly we can't make an informed decision.
Ok I understand that the Euro notes have to be sorted first before we get our say so i'm a bit premature. Just thought I had missed something being away for a while.
Guess we will all be updated by our respective brokers in due course when notices go out from IPF.
The document says, "To be eligible for the Early Voting Fee, such Voting Instructions (whether voting for or against the extraordinary resolution) must be received ...". So, as I read it, you don't have to vote in favour, you just have to vote to receive the fee.
YouInvest sent my invitation to vote this evening.
they need your vote for/against latest noon 30th October and they give a link online to cast your vote. They state that the notes can't be traded during the process and might be blocked until the process finishes on 12th November. The 0.50% will be paid no later than 12th November.
I presume that if you don't vote then you lose the chance of the 0.50% uplift but and i am not sure on this you might still be able to trade the notes in the normal way during the lock in period.
In general I see the market doesn't appear to be too concerned on these proposals and indeed the notes have traded higher since the announcement and the ords had an uplift too.
Not that I want to. Very happy to hold this one.