OPTI CANADAOPTI Bond Review - An Analysis of Upside for Debt & Equity Holders Under an Outright Sale Scenario
The two outstanding OPTI Canada corporate bonds (combined face value of US$1.75B) have been caught in the downdraft along with its common shares. They are currently trading at roughly US$0.34 on the dollar (bond performance summarized in Exhibit 8). At these levels, we believe they are oversold. In this report, we outline a scenario involving a possible sale of the company in the late Q1/10, early Q2/10 timeframe and quantify the potential upside for both the bondholders and common shareholders under each scenario.
OptiBondReview.pdf
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