In the grand scheme of things, saving $27m (£19m) in interest payments isn’t a game-changer for Sirius Minerals (SXX). But with cash generation from the group’s potash mine years away, every little helps. News that holders of $63.8m-worth of convertible bondholders this week accepted the company’s invitation to cash-out ‘in the money’ should be taken as a positive for shareholders.
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That’s despite the obvious – that issuing 218m new shares dilutes existing investors. A further $244m of the initial $400m in convertible bonds is also yet to be retired, meaning shareholders should brace themselves for occasional dips in the months and years ahead.
