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Mega Brands Inc MBLKF



GREY:MBLKF - Post by User

Comment by FFHwatcher1on Sep 25, 2012 1:48pm
278 Views
Post# 20412188

RE: RE: RE: warrants

RE: RE: RE: warrants

Had to do some re-reading.  Memory is deteriorating.

MB is paying down debentures, not buying back warrants. My bad.

Original 2010 deal of $141M Debenture @ 10% due June 15, 2015.

Paid down $20M in Q2 2011

Paid down $7.1M  in Q1 2012

Scheduled to pay down $7M and $14M in Q2 2013 and Q2 2014.

If all goes well, then have almost $92M owing in Q2 2015.  

In Q1 2015 warrants expire but can be exercised until then at a price of $9.94 ($9.94 x 12.2M shares = $121M capital raise if share price is greater than $9.94. vs. current trade of $9.50).  That could leave an extra $30M in cash with no Long Term Debt.

I also found it interesting that when they pay down their debenture, they can turn around and borrow 50% of that amount on their Asset Backed Loan

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