MYT share price
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MYT share price
Has something happened in the last week with MyTravel as the share price has leaped up to a close today of 32.25p. I know one of the big wigs resigned but has something happened with the bond holders decision due end Sep? The shares have steadily risen for the past few days now.
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MYT's share price has been rising for about 2 weeks now but the last 3 or 4 days has seen a rather big jump up and no sign of it loosing momentum.
Down to a lot of things really, things are picking up and people are travelling.
The staff at MYT are working hard to put the company back on track and it looks like they are succeding with the share price climbing rather rapidly.
As long as the bonds are sorted in september, I think MYT will have a sound future.
Good on them.
Down to a lot of things really, things are picking up and people are travelling.
The staff at MYT are working hard to put the company back on track and it looks like they are succeding with the share price climbing rather rapidly.
As long as the bonds are sorted in september, I think MYT will have a sound future.
Good on them.
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Mytravel reported to have offered the Bond-holders the following, as reported in DT(22/7):
"MyTravel, whose survival is dependent on a deal with the holders of £221.6m of convertible bonds by September 30, said current talks would leave the bondholders with "21pc of the enlarged issued share capital". This is much less than the 50pc-plus that the bondholders wanted.
The deal would see bondholders trade just under 6pc of their debt for shares, leaving them with almost £209m of bonds. They would agree to extend their maturity to January 2007. MyTravel added there would also be a "possible increase in the rate of interest payable on the bonds". MyTravel currently pays 5.75pc, or £12.7m annually, but the bondholders want that increased by around two percentage points.
The final major term under discussion is the payment of a "success fee" to the bondholders at the date the bonds are redeemed or refinanced, depending on the performance of the shares. This would be capped at £11m.
This fee is broadly similar to that negotiated with MyTravel's banks as part of a potential £1.3 billion refinancing, agreed in June. Under this, the banks could earn a maximum of £65m, payable in cash or shares, if MyTravel's market value exceeds £475m.
MyTravel was forced to reveal the terms of the talks after the shares jumped in early trading in response to press reports. They closed up 4.5 at 37.5p, while the bonds rose 2 to 59.5p in the pound. MyTravel said it was in "negotiations with an ad hoc committee" of its bondholders.
One analyst said: "If MyTravel pulls this off, it would be a fantastic deal for the shareholders. I'm surprised the bondholders are being so generous."
Shares slightly down to 37p at lunchtime today.
"MyTravel, whose survival is dependent on a deal with the holders of £221.6m of convertible bonds by September 30, said current talks would leave the bondholders with "21pc of the enlarged issued share capital". This is much less than the 50pc-plus that the bondholders wanted.
The deal would see bondholders trade just under 6pc of their debt for shares, leaving them with almost £209m of bonds. They would agree to extend their maturity to January 2007. MyTravel added there would also be a "possible increase in the rate of interest payable on the bonds". MyTravel currently pays 5.75pc, or £12.7m annually, but the bondholders want that increased by around two percentage points.
The final major term under discussion is the payment of a "success fee" to the bondholders at the date the bonds are redeemed or refinanced, depending on the performance of the shares. This would be capped at £11m.
This fee is broadly similar to that negotiated with MyTravel's banks as part of a potential £1.3 billion refinancing, agreed in June. Under this, the banks could earn a maximum of £65m, payable in cash or shares, if MyTravel's market value exceeds £475m.
MyTravel was forced to reveal the terms of the talks after the shares jumped in early trading in response to press reports. They closed up 4.5 at 37.5p, while the bonds rose 2 to 59.5p in the pound. MyTravel said it was in "negotiations with an ad hoc committee" of its bondholders.
One analyst said: "If MyTravel pulls this off, it would be a fantastic deal for the shareholders. I'm surprised the bondholders are being so generous."
Shares slightly down to 37p at lunchtime today.
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MyTravel clinches debt deal
MyTravel has struck a deal with creditors, which will defer some of its debt repayments.
http://news.bbc.co.uk/1/hi/business/3115743.stm
http://news.bbc.co.uk/1/hi/business/3115743.stm
