Athabasca Oil Corp T.ATH

RE:RE:RE:RE:RE:RE:2022 Notes

[fellowship]

Maxmoe wrote: Last time I'm going to try this. The early redemption feature is not the only way the company can buy the bonds back. If the company uses the early redemption feature, yes there is no "option" for bond holders and the company must make the bid for all bonds. Period. Full stop. Now, Stop talking and listen. The company can buy bonds at any time in the open market at any price they want if a bond holder will sell. The exact same as the company buying back its stock. If you can't understand the difference well f&ck it , I give up. Read investing for the obtuse or something.  

Greenday wrote: @ Maxmoe - You posted...... "Bond holders can take it or not. Or the company can buy the bonds in the market any time they want at any price they want."  That my friend is not accurate.

ATH has the right to call its bonds and if ATH exercised that right then the bond holders must surrender them.  It would happen the same way as what happens with a successful takeover bid.  On the effective date, the securities disappear from your account and the corresponding funds appear.  There is no take it or not involved. 

Prior to the effective date, ATH bonds can trade in the bond market for whatever the market will bear but that's simply bond trading which is seperate and distinct from a redemption.

ATH's financials show that the 2022 notes carry an early redemption charge of 2.5% so it's almost 100% certain that the debt won't be rolled over before February 24, 2021.


Athabasca may redeem the 2022 Notes at the following specified redemption prices: • February 24, 2020 to February 23, 2021 - 102.5% of principal • February 24, 2021 to maturity - 100% of principal

You both are decribing the same thing only difference is the time of the redemption, this is the reason you do not understand each other. 

In Max case he referring to early redemption , in Greenday case he is referring to the period that bonds can be redemed meaning before Feb 2022 or at maturity date. Since the bonds are callable . Do not worry you both are correct . Cheers !