RE: Petrobakken Energy Ltd. sells $900M in not Costing 8.7% to buy back the bonds isn't that big a hit.
It seams the convertibles costs were not 3.125% all in, they were closer to 6.36% in Q3. …
Convertibles As reported Q3 2012 …
“The conversion price is subject to change in certain circumstances including for dividends paid by the Company. Due to dividends paid to shareholders of PetroBakken from February 2010 to September 2011, the conversion price has been adjusted to US$36.27 per debenture “
They presented it this way in the Q3 Full-Report ..
Accretion on convertible debenture $ 6,040,000
Interest expense on convertible debenture $ 5,884,000
Together they amount to $11,924,000
essentially costing 6.36%