I have discovered that a provision of the RCF states that, "no dividends will be paid to shareholders until there is an exit event, being a change of control, refinancing of the RCF in full, prepayment and cancellation of the RCF in full or upon the termination date of the RCF, being May 2026."
I don't view this as a problem, as dividends are not an efficient way to allocate capital. Next week, I will publish a special post discussing the issues with dividend policies that every shareholder should be aware of.
Importantly, there appears to be no restriction on share buy-backs, which would be far more accretive to shareholder returns given the current share prices.
I really like the company, this looks like an interesting opportunity. And the fact that their only way of returning value to shareholders is through share buybacks makes it even more intersting.
I have discovered that a provision of the RCF states that, "no dividends will be paid to shareholders until there is an exit event, being a change of control, refinancing of the RCF in full, prepayment and cancellation of the RCF in full or upon the termination date of the RCF, being May 2026."
I don't view this as a problem, as dividends are not an efficient way to allocate capital. Next week, I will publish a special post discussing the issues with dividend policies that every shareholder should be aware of.
Importantly, there appears to be no restriction on share buy-backs, which would be far more accretive to shareholder returns given the current share prices.
I really like the company, this looks like an interesting opportunity. And the fact that their only way of returning value to shareholders is through share buybacks makes it even more intersting.