EXPM:EGRGF - Post by User
Comment by
uncleblackieon Mar 15, 2017 10:35am
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Post# 25981792
RE:RE:RE:Dividend Cut and EGL's deal with White Oak Fund
RE:RE:RE:Dividend Cut and EGL's deal with White Oak Fund Yes, it would have been nice to have been a fly on the wall during those discussions.
Just an uneducated guess but I agree, I'm sure the lender told them that it was a condition of the
loan to kill the dividend. I'm sure it wasn't much of a discussion actually as it simply comes down to whoever has the money, makes the rules. It was also stated in the news release that in order to experience growth the way they want to, the dividend is not sustainable.
The loan is for a four year term so you can be guaranteed that the dividend won't be reinstated within that time frame. It's purely a commodity based spec play now but does have some decent underlying assets if they can efficiently exploit them.
I think everybody has to also remember that this is striclty a term loan financing, meaning that no share dilution took place, very important to keep that in mind.