Replies to post #16289 on Banro Corp. fka BAA

[jb128]

Despite reality, the market sees it that way. It sucks but that's where we're at now; possibility of bk is baked in.

[TeamTOC]

You are right. We don't know that they need $120M at all, and if they do need it, they certainly don't need it all right away. I emailed Naomi just a few days ago specifically asking about debt in Q1. Her response broke out what they need in Q1, but she also gave me info on what they'd start paying on this year.

Below (in bold) is exactly what she sent me regarding their debt. By my math, they need ~$11M in Q1. I would imagine they can get that from gold sales (if needed). Also, in looking at these numbers, Q2 looks manageable since they don't have their bond interest payment. Q3 is where things could get interesting, as they have the large bond payment due among some other things kicking in, but still adding those up is only $15M.

I agree 110% that they can renegotiate terms, but in looking at the debts below, I believe the money they're trying to raise is only partially to pay off their debts...the rest is to put the finishing touches on Twangiza, and to bring Namoya up to designed capacity.

Here is an overview of debt and repayment terms for 2015:

BCDC loan – approx. $4.5 million – making monthly payments of $500,000, ending October 2015 (so, $1.5 million in Q1)

Rawbank loan – approx. $1 million – now paying $125,000/month (so, $375,000 in Q1)

Ecobank loan - $15 million – paying only interest right now. Beginning May 2015, will make 4 quarterly payments of $3.8 million into Q1 2016.

Gramercy liquidity backstop - $35 million + accruing interest. Making no payments now but will start making interest payments (at least) in August 2015 (roughly $500,000/month).

Bond interest payments - $8.7 million due February 28, 2015 and Aug 30, 2015

[braised007]

A simple look at their balance sheet and financing schedule shows they need all of $120M, although more ($150Mish) would be best.

Come on man...This is a company. Companies file financial statements which show the investing public the standing, health, cash flow, and income of the company.

[nutsyprofessor]

Hey guys, I hate to be the bearer of bad news but you better learn to read the financial statements; the total debt is actually $192 million and the payment requirements are clearly shown on page 19 of 35 on the last Financial Statement from November 2014. They need to pay $18,483,000 in less than on year and $242,641,000 in 1-3 years (total P&I payments equals: $261,124,000; all due in 1-3 years!!!).

Banro Corporation
NOTES TO THE INTERIM CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
For the three and nine month periods ended September 30, 2014
(Expressed in thousands of U.S. dollars, except per share amounts) (unaudited)


Offering Facility Total
$ $ $
Balance at January 1, 2013 154,685 - 154,685
Accretion 3,914 - 3,914
Balance at December 31, 2013 158,599 - 158,599

Debt Issued - 29,460 29,460
Accretion and Capitalized Interest 3,342 678 4,020
Balance at September 30, 2014 161,941 30,138 192,079

The table below details the timing of payments for principal and interest on the long-term debt:


Payments due by period
Less than one One to three Three to After four
Total year years four years years
Offering debt $ 175,000 $ - $ 175,000 $ - $ -
Offering debt interest 43,750 17,500 26,250 - -
Facility debt 30,700 - 30,700 - -
Facility debt interest 11,674 983 10,691 - -