Post by
longrun86 on Oct 18, 2024 1:48pm
Debt Repayment - Interesting
The news out last night is that Maxim has repaid the Senior Credit facility. Subsequent to the payout it has a $69.3 million of cash ($18.5 restricted). This feels very much like an interim step. It's not clear if they had initially intended to refinance Milner at this time or not.
I respect how Maxim operates even if it can be a bit frustrating. Their modus operandi is to "Do Something" and then tell you they have done it. Too many people out there that "Say Something" and then don't get it done.
Maxim is at a crossroads. The company either grows or sells. The last two years have been painful with the fire at Milner at a time when power rates were extremely high. I could have envisioned another $0.75 to $1 per share on the balance sheet.
If Maxim going to pursue growth, having a full and normalized quarter or two under Milner's belt would be helpful for a financing. Interest rates are also coming down which will help.
If they are going to sell the company, then there is no sense payout out interest and being restricted until the time a deal is done if they have the cash sitting around. I would like to see a price north of $6 per share if they were to sell.
The convertible debt is seemingly going to sit there until something happens. A bit painful to pay the interest on it.
Summit Coal will be revealed soon as worth something or nothing. Timing is still undertermined due to classic regulatory drag. It will also require that Valory can actually execute in raising the capital should the approval be received.
The next 3 to 6 months will be very telling.
LR