Since there seems to be so much concern about the $21M in...

Since there seems to be so much concern about the $21M in expenses related to the ALB pullout and the two loan syndicates, just consider this:

The latter of the two loans had better terms at BBSY plus a premium of up to 4%. Today, that could be as high as 8.43%. Instead, with the LGES deal, we’re paying SOFR, which is currently 4.84%.

On a $550M note that’s a difference of $19.75M per annum. By this time next year, we’ll already be ahead!

It also bears noting that if cash flow really does become an issue, for any reason, the LGES terms allow to pay interest with shares, whereas the banks would insist on cold hard cash.

The LGES deal was a master stroke of the highest order. Period.

I’m not a fan of essentially throwing away $21M, but in the long run it was the cost of moving from what APPEARED to be the best available option to what was even better.

Best regards, all!