TSX:SOT.DB - Post by User
Comment by
Meesha1on Aug 19, 2023 9:02am
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Post# 35596131
RE:RE:RE:Insiders transaction
RE:RE:RE:Insiders transactionThats not how it works. The debentures cannot be redeemed by Slate until 1yr before maturity. In that 1yr window they could satisfy the redemption (principal + interest) by issuing shares at 95% of the price of the units when the redemption is announced. The $157 mln of debentures cost them $10.6 mln in interest per year. They currently pay $10.2 mln per year in distributions. So the next step in this debacle is would be to cut the distribution entirely. Potential conversion to equity is a 2025 event for SOT.DB, and later for the other two.
Lease maturities is only 1.8% for the remainder of 2023 and 6.6% in 2024. So things could just limp along around here as occupancy is likely to be stable given this lease maturity profile, and a 40% AFFO payout ratio.
Where it gets interesting is the leverage ratio, currently 64% (and thats using their $7.20 NAV...LoL) is dangerously close to breaching the 65% covenant limit. They will need to divest some properties.