Replies to post #24319 on Alto Ingredients Inc (ALTO)

[ID Supermoney]

[ID Supermoney]

This still does not make any sense when all they had to do then is still take the loan for 4th plant $7 million!

But sell warrants say 1 million and no more dilution would be needed in the offering for another $7 million??!!


TIA


ID

[ID Supermoney]

This is where I disagree!!

that have a maturity date of June 30, 2016, the Plant Owners must pay a premium equal to the present value of all interest payments that would
have accrued from the date of such payment through June 30, 2016, calculated using a discount rate, applied quarterly, equal to the Treasury
Rate as of such prepayment date plus 50 basis points.

So treasury rate say is 2% add 0.5% say at most 3%

over 2 years say from June 2014 on $58 million to pay out early is PEANUTS!!

How do you get this $20 million penalty?????

TIA

ID

[ID Supermoney]

3. PE Holdings has a revolving credit facility and a term based facility that is part of the "Plant debt". The revolving facility was reduced by $15M, and the term facility increased. This allowed them to borrow $7M for the plant. At not great terms.


Quote:
The additional $7.0 million in borrowings is subject to an original issue discount of 6.25%, representing loan fees payable to the lenders, resulting in net proceeds from the additional borrowings of approximately $6.6 million.


The interest of the facility is Prime + 10%. They borrowed $7M, Paid $400K in immediate fees. Had loan proceeds of $6.6M and they pay interest on the $7M principal.

Again Lenders changed the rules for them to lend again!! See my previous posts!!


ID

[Rule_62]

Thanks for an excellent post

[ID Supermoney]

4. The shares are not to pay for the Madera opening.

Why issue any more shares when they could have used warrant money then???


TIA


ID