Boparan - cautious signal

All,

Please find our updated analysis here.

We understand the rationale to secure liquidity - at a time the company has plenty of it - for a time where it may have to negotiate with creditors. However, it's not a bullish signal. 

Boparan’s new Cavaghan & Grey facility should sit structurally sr. to the largely share pledge and intercompany loan based collateral securing the RCF and bonds. Bankers to C&G have been Barclays, GS and RBS in the past.

Cavaghan & Gray Limited is not a guarantor under the bond / RCF documentation but sits indirectly under Northern Foods Limited - a guarantor within the restricted group. Thus the new facility should largely exhaust the general Permitted Debt basket  of £40m.

Wolfgang