devonplay
27 Mar 2019
Last man standing? U.K. – 27 Mar 19 Sports Direct considers 61.4 million pounds bid for Debenhams Sports Direct, the British sportswear firm controlled by Mike Ashley, said it is... LONDON (Reuters) - Sports Direct, the British sportswear firm controlled by Mike Ashley, said it is considering an offer for Debenhams which values the ailing department store group at 61.4 million pounds ($80.9 million). Sports Direct, which last year bought department store chain House of Fraser out of administration, has a near 30 percent stake in Debenhams and has been trying to wrest control of it for months. The terms of the possible offer would be 5 pence a share in cash - a premium of 127 percent to Debenhams’ closing share price on Tuesday of 2.2 pence, which valued the firm at 27 million pounds. Shares in Debenhams surged 59 percent to 3.56 pence at 0815 GMT. Sports Direct added it would also assist Debenhams in addressing its immediate funding requirements. The proposal is conditional upon Debenhams immediately appointing Ashley as its chief executive and terminating the noteholder consent solicitation process it announced last week. That process is seeking agreement from bondholders to change the terms of some of their bonds so that Debenhams can secure new loans of up to 200 million pounds from existing lenders. I hope they go for it, SPD paying the DEB 5.25%'s would make me happy . The obvious target is still the landlords. Those liabilities are insane. It will be interesting to see if “change of control†- a very grey term legally - comes into play and DEB/SPD make an offer to the bond holders…101% plus accrued and upaid will be OK by me. It’s all a gamble. I guess we’ll know more on Thursday. DL
ValueSeeker8
27 Mar 2019
Mike Ashley's Sports Direct is ready to pay £61.4m to take full control of Debenhams Mike Ashley’s Sports Direct considers Debenhams bid Sports Direct already owns a near 30% stake in the retailer. The potential offer would be conditional on Mr Ashley becoming Debenhams chief executive. Sports Direct renewed its attack on the Debenhams board, saying it was either incompetent or was co-operating with lenders to wipe-out the investments of shareholders. It is considering making an offer of 5p per share for Debenhams, more than double Tuesday’s closing share price of 2.2p. Debenhams said it was not making a statement at present, but it has been resisting Sports Direct takeover attempts. The department store chain is currently trying to raise up to £200m from existing lenders. Under that deal shareholders, including Sports Direct, could see the value of their investments wiped-out. In its latest statement, Sports Direct said it could help Debenhams with its debt problems. Its deputy chief financial officer Chris Wootton said shareholders were “sick and tired of being ignored, cast aside and trampled underfoot by the lenders of Debenhamsâ€.
devonplay
26 Mar 2019
Last man standing? You’ve got to envy the hedge funds: 1, Make money shorting DEB 2, Trade DEB taking money off private investors 3, Buy DEB debt and get 5.5% or 45% YTM if you bough at the 46% (of the issue price) mark. 4, See the DEB debt you bought part converted back into the equity you’ve already sold! Meanwhile someone thinks they can beat the market with a trade of £1000.00 Debenhams is a gold mine! DL
Ripley94
26 Mar 2019
Last man standing? DEB… XXXXX Second rns after close possible offer from Ashley. Share up 50% but only to 2.35p… Could he dump his shares into rise ? Appears he has 30%
devonplay
26 Mar 2019
Last man standing? the consummation of any transaction (including, without limitation, any merger or consolidation), the result of which is that any Person (including any ‘‘person’’ (as defined above)), become the Beneficial Owner, directly or indirectly, of more than 50% of the Voting Stock of the Company, measured by voting power rather than number of shares; and
devonplay
26 Mar 2019
Last man standing? DEBENHAMS PLC £225,000,000 5.25% Senior Notes due 2021 The £225,000,000 5.25% Senior Notes due 2021 (the ‘‘Notes’’) will be issued by Debenhams plc (the ‘‘Company’’). The Notes will bear interest at the rate of 5.25% per annum payable semi-annually in arrears on 15 July and 15 January of each year, beginning on 15 January 2015. The Notes will mature on 15 July 2021. The Company may redeem, at its option, some or all of the Notes at a redemption price equal to 100% of the principal amount thereof, plus accrued and unpaid interest, if any, plus the applicable ‘‘make whole’’ premium, as described in this offering memorandum (this ‘‘Offering Memorandum’’). Prior to 15 July 2017, the Company may also redeem up to 35% of the aggregate principal amount of the Notes using the net proceeds from certain equity offerings at the redemption prices set out in this Offering Memorandum, if at least 65% of the aggregate principal amount of the Notes remain outstanding. Upon the occurrence of certain events constituting a change of control, the Company may be required to make an offer to repurchase all of the Notes at a price equal to 101% of the principal amount thereof, plus accrued and unpaid interest, if any. Additionally, the Company may redeem all, but not less than all, of the Notes in the event of certain developments affecting taxation. DL
devonplay
26 Mar 2019
Last man standing? Agreed, it’s not looking good. The shareholders look screwed, the debt holders 50/50. I’ve had a punt on the debt, it gives a decent upside if itmakes it through to redemeption. With the possibility of a little more positive outcome. I wouldn’t bet even a % of my portfolio on this. Even if Ashley makes an offer, those thinking it will be at a decent price are, I think, are going to be very unhappy. Given it’s long term liabilities, and senior debt, there’s very little reason he’s going to want to be generous. Even as a company under t SPD the future looks a gamble. It’s going to be the landlords that face the biggest threat, what he does about senior debt is less clear. A low ball offer for the remainder of the equity, pressure on the landlords and servicing the senior debt (with a SPD guarantee) would the outcome I’d most like. It could also be the most effective for SPD in getting this deal done. If he does something about the 51/4 notes down the road is a secondary question at this stage. Early redemption might be a sensible option. DL
TX2
25 Mar 2019
Last man standing? Debenhams also has approx £4 billion,yes billion,off balance sheet liabilities for future payments on leasehold properties due on outstanding leases many of which run for up to 25 years most also have upward only revisions every 5 years which it has contracted to make.In addition it has to pay rates & repairs on these properties. It needs to close many stores because they are unprofitable but cannot walk away from the leases payments,rates & repair of these properties. This is Debenhams major problem which I pointed out on these boards in 2017 & 2018;indicating that I considered that the shares were of questionable value,they were about 25 times the value then, as it would have to file a CVA (Creditors Voluntary agreement) and would need to raise addition capital to refinance & restructure the business. Debenhams has few realisable assets.I will be amazed if even secured creditors salvage much.Where & what is the security for the loans?Much of the stock is owned by concession holders who will pull their stock out.Direct suppliers of Debenhams “own Lines†will have cut deliveries;they won’t get paid for goods supplied but the cash from sales will be going to pay wages & other overheads. In my opinion the management have left it too late to salvage much even for secured lenders…
devonplay
25 Mar 2019
Last man standing? Fascinating battle: £40m cap v £500m debt. DL
Ripley94
25 Mar 2019
Last man standing? DEB… XXXXX RNS … Ashley’s response shares down 5% again but within larger spread.
Man_Panda
22 Mar 2019
In whose interest Given his toxic actions in the past I don’t think anyone would want MA any closer than arms length. I guess they have no choice at this point sadly.
devonplay
22 Mar 2019
Last man standing? I don’t think bond holders will give way, unless Ashley steps in and offers them the same protections. That’s first ranking, and possibley more security. Its possible the new offer to bond holders will along with equity attached. So there will be further security and equity upside. That sound attractive to me, as a non equity participant. But, it’s got along way to play. Expect more RNS. Possibley, further dilution. DL
ValueSeeker8
22 Mar 2019
Last man standing? Mike Ashley proposes to purchase Magasin Du Nord for £100 m: +++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Date: 22 March 2019 SPORTS DIRECT INTERNATIONAL PLC (“Sports Direct†or the “Companyâ€) STATEMENT REGARDING FURTHER OFFER OF SUPPORT TO DEBENHAMS PLC Sports Direct notes the continued media speculation in relation to Debenhams plc (“Debenhamsâ€) and its refinancing and restructuring. Sports Direct wishes to confirm that in order to assist Debenhams with its short term liquidity requirements, Sports Direct has offered to acquire (subject to necessary consents and approvals) Magasin Du Nord, Debenhams’ Danish business. Magasin Du Nord had been put up for sale by Debenhams last year, and Sports Direct offered to purchase the business for £100m cash consideration (or, if Debenhams believes the business is worth more, has invited Debenhams to provide further details of its valuation). Under Sports Direct’s proposal, Debenhams would have a 12 month option to buy back Magasin Du Nord at the price at which it was sold to Sports Direct. Debenhams would also have the right to continue to market the business, gaining the benefit from any uplift above the initial sale consideration were it sold to a third party in that 12 month period. In connection with the above, it is proposed that Mr Mike Ashley would become a director and the CEO of Debenhams to assist Debenhams through its restructuring process. Sport Direct believes its proposal would provide additional management and first class leadership to Debenhams through this challenging period of restructuring, together with additional funding. -Ends- Sports Direct International plc Cameron Olsen, Company Secretary LEI: 213800JEGHHEAXIJDX34 T. 0344 245 9200 E. [email protected] ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ Debenham Response: ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ 22 March 2019 DEBENHAMS PLC Response to proposal from Sports Direct The board of Debenhams confirms that it has received a proposal from Sports Direct International plc in connection with a proposed acquisition of Magasin du Nord, conditional upon Mike Ashley being appointed as the CEO of Debenhams. This proposal comes without any commitment to participate in the wider financing solution. The board has responded to Sports Direct directly, that, as with all other proposals received to date from Sports Direct, it does not address the company’s funding and restructuring requirement, while balancing the interests of all stakeholders. Magasin is a key part of the Debenhams group, is cash flow generative and a meaningful contributor to group profits. As such, Magasin is an important part of any lending proposition and therefore any broader solution that protects value for the group. Further, there are obvious concerns with the proposal that Mike Ashley becomes CEO of Debenhams given that Sports Direct owns our direct competitor House of Fraser. The board has remained open to engagement with Sports Direct throughout its refinancing process and has provided clear guidance on what would represent workable solutions that would allow Sports Direct to participate while also protecting the interests of other stakeholders. This guidance has been repeatedly ignored by Sports Direct. Debenhams continues to make progress with its refinancing and restructuring discussions with existing lenders, Noteholders and other stakeholders. The board remains open to constructive involvement from Sports Direct and other stakeholders in this process. [ENDS] ++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++++ So there could still be some hope for shareholders if they reach an agreement before 28/03?
devonplay
22 Mar 2019
Last man standing? If anyone is interested in the bond - en.boerse-frankfurt.de Börse Frankfurt (Frankfurt Stock Exchange): Stock market quotes, charts and news boerse-frankfurt.de: Aktuell, unabhängig und kompetent. Börsennachrichten rund um die Themen Aktien, Börse, Börsenkurse, Fonds und Devisen. Priced at 46% of issue price, yield c11%. DL
devonplay
22 Mar 2019
Last man standing? [link] DEBENHAMS PLC ANNOUNCES CONSENT SOLICITATION DL
