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That's how you sell a downgrade!
Package it with preferential share offer!
Nufarm also advised that the Group’s financial performance had been impacted by adverse seasonal weather conditions and supply related impacts. The company expects to report underlying earnings before interest, tax, depreciation and amortization (EBITDA) of around $420 million for the 2019 financial year, subject to finalization of the accounts and audit. This compares to the previously advised range of $440 million to $470 million and consensus estimates of $436m.
Nufarmhas undertaken the placement of $97.5million of preference securities (PS) to existing shareholder and strategic business partner, Sumitomo Chemical through a wholly owned subsidiary Nufarm.The transaction strengthens Nufarm's balance sheet as a result of the issue of an equity instrument and builds on the longstanding relationship between Sumitomo and Nufarm. Key terms of the security include: •Securities may be exchanged for Nufarm shares at Sumitomo’s electionany time after 24 months at an exchange price of AUD$5.85 per Nufarm share
•Nufarm may purchase the preference securities from Sumitomoat any quarter following issue of the securities for the full principal amount outstanding at that time and the amount of any unpaid distributions
•A quarterly distribution at a fixed rate of 6% is payable to Sumitomo for the first 12 months and 10% thereafter. YIKES 10% THERE AFTER
In the even THAT Investment Pty Ltd does not pay the distribution on the PS Nufarm may not declare a dividend payment in respect of any of its ordinary shares or step-up securities until all undeclared distributions are declared and paid on the PS F the rest of the shareholders.
Market seems to like it as a short term risk buffer and is up 3.5%
Package it with preferential share offer!
Nufarm also advised that the Group’s financial performance had been impacted by adverse seasonal weather conditions and supply related impacts. The company expects to report underlying earnings before interest, tax, depreciation and amortization (EBITDA) of around $420 million for the 2019 financial year, subject to finalization of the accounts and audit. This compares to the previously advised range of $440 million to $470 million and consensus estimates of $436m.
Nufarmhas undertaken the placement of $97.5million of preference securities (PS) to existing shareholder and strategic business partner, Sumitomo Chemical through a wholly owned subsidiary Nufarm.The transaction strengthens Nufarm's balance sheet as a result of the issue of an equity instrument and builds on the longstanding relationship between Sumitomo and Nufarm. Key terms of the security include: •Securities may be exchanged for Nufarm shares at Sumitomo’s electionany time after 24 months at an exchange price of AUD$5.85 per Nufarm share
•Nufarm may purchase the preference securities from Sumitomoat any quarter following issue of the securities for the full principal amount outstanding at that time and the amount of any unpaid distributions
•A quarterly distribution at a fixed rate of 6% is payable to Sumitomo for the first 12 months and 10% thereafter. YIKES 10% THERE AFTER
In the even THAT Investment Pty Ltd does not pay the distribution on the PS Nufarm may not declare a dividend payment in respect of any of its ordinary shares or step-up securities until all undeclared distributions are declared and paid on the PS F the rest of the shareholders.
Market seems to like it as a short term risk buffer and is up 3.5%
