Ag Growth (AFN) sank nearly 30% on its proposed debt amendments, which would see the rate on its notes due at year end rise 375 bps to 9%…

… if approved at the end of October. With over $200M due in 2027, it’s reasonable to expect management will pursue a similar “raise and extend” strategy…

… as they contend with a declining order book…

… and slowing revenue, with the tailwind from Brazil now gone.

With the stock off 27% on the news, it seems like investors are discounting more than just higher interest expense…

… which is likely to keep a lid on the multiple until resolved.

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