Full Circle Capital Corporation (“Full Circle”) will merge with Great Elm Capital Corp. (“GECC”), a newly formed entity with approximately $120 million in net assets (“Contributed Assets”), and formed by MAST Capital Management, LLC (“MAST”) and its affiliated funds, and Great Elm Capital Group, Inc. (“Great Elm”)
The surviving combined entity, Great Elm Capital Corp., will elect to be regulated as a BDC and will apply for listing on NASDAQ under the symbol “GECC”
Enhanced Scale: the transaction more than doubles current net assets of Full Circle – from approximately $81 million to over $190 million (2)
Confirmed NAV: the transaction values Full Circle’s common stock at 100% of NAV
Liquidity: share for share exchange net of $0.22 per share special cash distribution to Full Circle stockholders, paid immediately prior to the merger and representing 8.1% of closing stock price of $2.71 as of June 23, 2016
Post Closing Support: up to $15 million 10b5-1 share repurchase program at 90% of NAV or below (subject to certain limitations, see slide 10)
Experienced New Manager: 14 year institutional track record in special situations / proprietary private debt opportunities
Differentiated Go-Forward Investment Strategy focused on:
— Yield plus capital appreciation on instruments trading in the market
— Capitalizing on opportunity to source middle-market value credit opportunities
— Providing growth capital
Stable Base Distribution with Upside: Pro Forma NII annual cash distribution yield expected to be targeted at 9% of NAV (3)
Manager Alignment of Interest: Great Elm Capital Management, Inc. (“New Manager”) significantly aligned with all stockholders through its parent’s approximately 15% ownership in GECC
30 million in cash for a 15% stake in a newly merged BDC called..... Great Elm Capital Corp.
The parent of Great Elm Capital Management, Inc. will own approximately 15% of the outstanding shares, on a pro-forma basis;...the parent seems to be GEC. What is unclear to me is if the management fee of 1.5% of gross assets(200M), paid to Great Elm Capital Management, Inc, will go to GEC as revenue. There was no press release on this deal, as of yet.
A day like today, a lot of option holders (naked put buyers ) made rediculous money, as many stocks took out several out of the money strikes. Many weekly puts were up 1000%, and a lot more.
Sheet prices have slipped for the first time this year amid a slow summer market and questions about what the remaining months of 2016 might hold. There's a weird quietness in the market right now. People think it may have peaked. But they don't think it's going to come falling back down, either, one Midwest service center source said. Some market sources cautioned that steel prices move up or down but are rarely flat for long. But most rejected the possibility of sheet prices seeing a sustained or significant drop heading into the second half of the year. Anyone calling for a collapse needs to walk me through their methodology, because the trade cases are a game changer, one southern service center source said. U.S. mills have filed sweeping trade petitions against hot-rolled, cold-rolled and coated flat-rolled steel, while idling domestic capacity. The result: Supplies remain tight despite lackluster demand, a situation that should lead to stable pricing in the near term, market participants said. The big question is inventories, assuming supply and demand hold steady, they said. The typical restocking that occurs in an environment of rising prices has not happened, perhaps because of tighter credit limits on smaller regional service centers and their consumers, as well as concerns in some corners about the sustainability of higher prices. Whatever the reason, the effect is that stocks remain low and steady buying should continue, supporting prices at or around current levels, sources said. Others contend that buyers may have stocked up too much as they tried to get ahead of rapidly rising prices earlier in the year, adding that if this is the case, inventories currently at historic lows could swell in coming months. Also weighing on the market are persistent questions about how the spread between hot-rolled and cold-rolled steel has been sustained at $10 per hundredweight ($200 per ton).
FOOL you add zero value here, on anything related to the markets, or especially CLF. A good short is fine, I always like to get the opinion of the opposite side of a trade I am in.. But a dumb one like you is completely useless.
Steel pipe producers may see new business result from the Protecting Our Infrastructure of Pipelines and Enhancing Safety (Pipes) Act, analysts said. The pipeline safety law, signed by President Obama June 22, calls for scrutiny of the age and condition of 2.6 million miles of pipeline across the United States, setting new and tighter inspection requirements for the Department of Transportation's Pipeline and Hazardous Materials Safety Administration. The new law "should be a plus" for the pipe mills, Paul Vivian, principal at St. Louis-based Preston Publishing Co. If pipes are inspected more keenly, deficiencies are bound to be identified. "In general, this has the potential to drive an increase in replacement, and most certainly it should drive an increase in maintenance," he said. Pipeline infrastructure is graded based on pressure ratings, but some pipe may see its rating fall under the updated rules, which will call for increased data analysis. "It will throw some number of pipelines into a category where all or sections of the pipe would have to be replaced or remediated in some fashion," Vivian noted. Accelerated pipeline replacement is a welcome change for domestic steel pipe mills, which have suffered from lower demand for oil country tubular goods and higher costs for hot-rolled coil. The Pipes Act also may help unlock already pent-up demand for new steel. About 60 percent of interstate natural gas pipeline in the United States was installed before 1970 and 37 percent before 1960, according to a November 2012 assessment from the Washington-based Interstate Natural Gas Association of America (INGAA) Foundation. "The age of pipes is actually pretty old in North America, especially in the U.S.," Kimberly Leppold, senior metals analyst at Metal Bulletin Research's tube and pipe group. "There's a lot of pipeline out there that needs replacement, even before the law was passed," she said.
The U.S. steel industry has been injured by imports of coated flat-rolled steel from China, India, Italy, South Korea and Taiwan, the International Trade Commission (ITC) said. Final anti-dumping and countervailing duty orders will be issued by the U.S. Commerce Department as a result, the commission said June 24. All six ITC commissioners voted affirmatively in a decision that was cheered by U.S. steelmakers and industry associations. The domestic steel industry has suffered dramatically due to the increase in unfairly traded imports, but today's decision is an encouraging step toward a level playing field, U.S. Steel Corp. president and chief executive officer Mario Longhi said in a statement June 24. The ITC's decision on coated products, combined with an affirmative vote on cold-rolled material in a separate case, indicates that U.S. officials are increasingly willing to combat unfair trade practices, Philip K. Bell, president of the Washington-based Steel Manufacturers Association, said in a June 24 statement. Proper enforcement of our trade laws is critical. I am optimistic that these decisions will help provide some relief to domestic producers, Bell said. The Alliance for American Manufacturing (AAM), also in Washington, took a more balanced view. Amid the celebration, we ... hope that policymakers will remember that the time to stop a flood is before you're in over your head, AAM president Scott Paul said. For years we've been saying it and Washington is finally listening: China doesn't play fair when it comes to steel, he added, praising U.S. officials for their efforts to stymie imports from that nation in particular. Chinese suppliers were hit with typically high margins, while other countries and producers joined them in facing steep duties. China was slammed with anti-dumping and countervailing duties of 209.97 percent and 241.07 percent, respectively.
I would wager good money this recycling bot," clf_twenty_and_up" is ironorestrong ! Iron put this dumb bot to bed, and do everyone a favor, particularly the longs.
Essar Global may be out of the picture when it comes to retaining control over Essar Algoma, but it has not left the Canadian steel scene, sources said. And if it were to acquire U.S. Steel Canada, Essar might restart the blast furnace at the steelmaker's Hamilton works, which has been idle since 2013, they suggested. It is not clear whether KPS would restart the Hamilton furnace. Essar reportedly sees itself in a stronger position to acquire U.S. Steel Canada because it is a strategic bidder with deep knowledge of the steel industry, sources said. It may also be more union-friendly than potential financial bidders including KPS and more committed to bringing steelmaking back to Hamilton, an iconic steel town, they said. Bedrock Industries may also be in the running for U.S. Steel Canada, sources said. The NewYork-based private equity firm which lists Alan Kestenbaum as a principal, board member and investor, according to its website did not respond to a request for comment June 22. Kestenbaum is also executive chairman of Miami-based Globe Specialty Metals Inc., which is now part of FerroGlobe Plc following a merger with Spanish silicon metal giant Grupo FerroAtlantica SA. The timeline for any deal for U.S. Steel Canada is fluid because it depends on both companies' CCAA proceedings, sources noted. Essar Steel Algoma filed for protection under CCAA and Chapter 15 of U.S. bankruptcy law in November. U.S. Steel Canada filed for CCAA protection in September 2014 and is seeking buyers for its assets, which consist largely of the Hamilton Works and its Lake Erie Works in Nanticoke, Ontario. A spokesman for Hamilton, Ontario-based U.S. Steel Canada declined to comment, citing nondisclosure agreements.
KPS Capital Partners LP and Essar Global Ltd. are in the race to acquire U.S. Steel Canada Inc., sources said. The New York-based private equity firm wants to merge U.S. Steel Canada with Essar Steel Algoma Inc. to form a single entity that would be stronger than either company on its own, according to sources familiar with the potential deal, who declined to speak on the record because of confidentiality agreements. KPS intends to keep the operations now running at both Essar Algoma and U.S. Steel Canada active, and would invest at least $500 million in their facilities over five years if it succeeds in acquiring them, sources said. A consortium of bidders formed by KPS has agreed to buy Sault Ste. Marie, Ontario-based Essar Steel Algoma, and was the only party to submit a qualified binding bid, sources said. The acquisition hinges on support from the province of Ontario, and on a new collective bargaining agreement with workers represented by the United Steelworkers union, sources noted. Still, they believed that KPS has the financial firepower to provide sufficient capital for Essar Algoma and U.S. Steel Canada, as well as a track record of successfully restructuring both Canadian and union-represented companies. Essar Algoma received seven bids during the initial phase of its sales process, but only one joint bid from KPS and the steelmaker's term lenders at a binding second phase, a company spokeswoman said. That's in part because a judge in Essar Algoma Canada's Companies Creditors Arrangement Act (CCAA) proceeding, roughly the equivalent of a Chapter 11 bankruptcy case in the United States, dismissed another bidder, the spokeswoman said. The bidder in question was deemed to not have demonstrated the financial wherewithal to consummate the transaction, the spokeswoman said. She declined to identify the dismissed bidder. Other sources, however, named Mumbai, India-based Essar Global Ltd. as the likely party.
Don't forget, the secondary is out there. They can price this at any time. Perhaps LG told the investment banker not to price this deal under 5! Every 1/4 point they can get is another 20M of mitigated dilution. Waiting has risk, but so far so good.
The Japanese steel industry will carefully study this decision and, after holding discussions with the Japanese government, determine a proper course of action,he told AM via e-mail June 22. The products covered by the investigation are cold-rolled steel products, whether or not annealed, painted, varnished or coated with plastics or other non-metallic substances, according to the ITC. Apparent U.S. consumption of those products was valued at $19.9 billion in 2015, with U.S. cold-rolled steel imports from China and Japan valued at $431.5 million for the year, the agency said. Shipments from the 13 existing domestic producers, who employed 11,218 workers last year, were worth $18.3 billion, the ITC said. The petition was filed last July by domestic producers AK Steel Corp., West Chester, Ohio; ArcelorMittal USA LLC, Chicago; Nucor Corp., Charlotte, N.C.; Steel Dynamics Inc., Fort Wayne, Ind.; and U.S. Steel Corp., Pittsburgh.
The U.S. steel industry has been materially injured by imports of cold-rolled flat steel products from China and Japan, the International Trade Commission (ITC) said June 22. All six ITC commissioners voted affirmatively. Chinese producers are now facing anti-dumping penalties of 265.79 percent, while Japanese producers face margins of 71.35 percent , with final orders to that effect to be issued by the Commerce Department. Chinese producers will also be hit with countervailing duties of 256.44 percent, for a whopping 522.23 percent in all. However, the ITC returned a negative determination for both countries regarding critical circumstances, whereby producers had been accused of stepping up shipments following the filing of the case to beat potential penalties. As a result, goods that entered the United States from China prior to Dec. 22 will not be subject to retroactive countervailing duties, and goods that entered the United States from China and Japan prior to March 7 will not be subject to retroactive anti-dumping duties, the ITC said. Domestic industry participants cheered the ITC's injury determination. The commission made the right call today, Alliance for American Manufacturing president Scott Paul said in a statement June 22. China and Japan have clearly continued to overproduce and subsidize steel at the cost of American jobs, and we appreciate today's commitment to enforce our trade laws. Meanwhile, the office of Sen. Sherrod Brown (D., Ohio) attributed the petitioners success in the case to bolstered trade legislation, such as the Leveling the Playing Field Act . But Tadaaki Yamaguichi, chairman of the Japan Steel Information Center and president of New York-based JFE Steel America Inc., called the decision extremely regrettable and unjust, noting that during the ITC's anti-dumping investigation the Japanese steel industry denied that its product injured the U.S. industry.
Essar Global Ltd. objects to the sale of Canadian subsidiary Essar Steel Algoma Inc. to a consortium of bidders formed by KPS Capital Partners LP. There has not been adequate opportunity for other potential bidders to participate throughout this process, Mumbai, India-based Essar said, blasting the private equity firm's potential acquisition of the Sault Ste. Marie, Ontario-based steelmaker. A KPS spokesman did not respond to requests for comment June 21. Stronger steel prices should have given Essar Steel Algoma more time to consider options besides the New York-based private equity firm, Essar said, noting that it has invested nearly $800 million in its subsidiary and supported the Canadian company through several market downturns. The company also contended that Essar Steel Algoma's filing for creditor protection was precipitated by the cancellation of key raw materials supply contracts. Cleveland-based iron ore miner Cliffs Natural Resources Inc. canceled its iron ore pellet contract with Essar Steel Algoma in October. The Canadian steelmaker filed for protection under (CCAA) and Chapter 15 of U.S. bankruptcy law the following month. Nonetheless, Essar said it has no intention of leaving Canada's steel scene. Essar Global is optimistic about the future of Canadian steel and looks forward to being active participants for many year to come,the company said. Essar Steel Global Fund Ltd. has also been identified as among the potential bidders for Essar Steel Algoma. The company said Tuesday that it could not confirm or deny any potential bid for the Canadian subsidiary, because of confidentiality agreements. Essar has also been reported to be a potential suitor for U.S. Steel Canada Inc. An Essar spokeswoman did not respond to requests for comment on whether it is interested in the Hamilton, Ontario-based steelmaker. U.S. Steel Canada filed for CCAA protection in September 2014.
Maybe this is the impetus for a full blown takeover of this company. Always thought the company wound merge with XO or another wireline company. Google would be good. At some point Goldman Sachs has to sell. They have wasted a decade in this investment and sit a VP on the board. Management and directors continue to buy stock in the company, both open market and in lue of cash compensation. If Google can give me 5 or 6 a share and they can have my proxy .
Most efficient/fastest way I know to get information out! You know a better way, feel free to post Are you short this name?
This is long overdue. Should fly, and create a more level playing field for investors when valuing US based mining companies ...."not only minerals recoverable today but the full potential of its mineral resource holdings".