Each one in plain English, with the numbers worked through for a shareholder.
12 Oct 2016capital raising announcement● Neutral
Rex reported that, by Oct 6, 2016, further private swaps of old notes for stock took its share issuance past 1% of the shares outstanding at its last 10-Q. It issued 1,046,361 shares (about 1.0% of shares outstanding after issuance) on Oct 7 for $957,000 of 8.875% 2020 notes, $337,000 of 6.250% 2022 notes and accrued interest. This continues the debt-for-stock swaps with small amounts of debt retired and more dilution. Rex says it may buy back or exchange more notes.
25 July 2016capital raising announcement● NeutralMajor
On July 21, 2016 one noteholder swapped $43.5M of the 1.00%/8.00% second-lien notes due 2020 for about 16.8M new common shares, and the notes were cancelled. Rex says this cuts debt by $43.5M and saves about $11.1M of interest, and that debt is down about $84.0M since the end of Q1 with over $22M of interest savings. The cost to common holders is dilution (16.8M new shares), and Rex says it plans similar deals.
On June 20, 2016 Rex agreed to swap 102,450 preferred depositary shares for 730,000 new common shares (about 1.0% of shares outstanding after issuance), closing about June 21. This continues the preferred-to-common swaps begun in April and the June 6 deal, so existing common holders are diluted further and less preferred stock remains. Rex says it may buy back or exchange more preferred.
On June 6, 2016 Rex agreed to exchange 600,000 preferred depositary shares for 4,350,000 common shares (about 5.6% of shares outstanding after issuance), closing by June 13. This continues the conversion of preferred stock into common stock begun in April, which dilutes existing common holders and reduces the preferred outstanding. Rex says it may repurchase more preferred shares.
On April 19, 2016 Rex agreed with one holder to swap $17.225 million of its 2020 notes and $9.705 million of its 2022 notes for 5,221,909 common shares (about 7.1% of shares outstanding after issuance), issued April 22, with accrued interest waived. This retires some of the old notes left after the March exchange offer, at the cost of further dilution to common holders. Rex says it may do more such deals.
On April 17, 2016 Rex agreed with one holder to swap 137,500 preferred depositary shares and $2,198,474 of the new second-lien notes for 1,924,618 common shares (about 2.8% of the shares outstanding after issuance), with accrued dividends and interest waived. Closing was expected around April 20. This continues the move of preferred stock and debt into common stock, and adds to dilution for common holders. Rex says it may do more such deals.
31 Mar 2016capital raising announcement● NeutralMajor
On March 31, 2016 Rex completed its exchange offer. Holders of $323.98 million (92.57%) of the 2020 notes and $309.135 million (95.12%) of the 2022 notes tendered, and received $633,657,047 of new 1.00%/8.00% second-lien notes due 2020 plus 8,412,615 new common shares. The new notes pay 1% interest for the first three semi-annual payments, with first payment October 1, 2016, and 8% cash after that, and they sit behind the bank credit facility. The old-note indentures were stripped of covenants on borrowing and liens, so the small remaining unexchanged old notes have weaker protections. This resolves the exchange offer thread, replacing most unsecured debt with secured debt at lower near-term interest and adding new shares that dilute existing holders. The Registration Rights Agreement requires an exchange offer into registered notes within about 360 days.
