Concordia Healthcare Corp. T.CXR.R

Shorters die tomorrow...

[fundtrader]

gap up big time

[YOLO77]

This post has been removed in accordance with Community Policy

[Craigbad]

They are issuing more debt! The debt to ebitda is likely going over 7!!!!!!!!!!! More interest to eat cashflow! Great news! Any UK price pressure is going to kill this next year!

[Lemerson]

If nothing was mentioned about repaying debt, im assuming these will be issued for a high interest rate. If not would they not have been better to pay off higher interest debt with this. They are digging a deeper hole

[LaticelnExile]

This post has been removed in accordance with Community Policy

[Craigbad]

I agree. This is beyond crazy. They must have been turned down by pirate equity. This is turning into a bigger gong show than I ever expected. Looking like they are very desperate for cash. They told the market they were targeting 6.4 debt to ebitda after last earnings a few weeks ago and now they are issuing more debt. You can't trust these guys at all. Final deaththrows in my opinion within

[LaticelnExile]

This post has been removed in accordance with Community Policy

[fundtrader]

i guess a galon of lube wont be enough now hehehehe...

[PROtrading]

Gross!

[fundtrader]

i guess u can share it with lettuce and craigbad...but please ask them if they have enough

[LaticelnExile]

This post has been removed in accordance with Community Policy

[Craigbad]

Your forgetting that a little over a month ago they told the market they were targeting 6.4 debt to ebitda and now they're going over 7. Any hit in the UK and it will be going over 8. Even the bravest of value managers is not goung to be very happy. They must be incredibly desperate for cash and if there is no interest in the offering we'll all find out why.

[Lumberfeverlong]

Pro, u r such a dck!  You modify people's messages for your OWN enjoyment!  I bet his bottom wouldn't be gross to you at all....

[capmorgan]

Lattice, What if they buy another underpriced pharma . With current underpriced pharma's out  there, they could really get more cash flow into the fold. You shorts just might get surprised with what they use this money for. Just keep shorting!!!!

[LaticelnExile]

This post has been removed in accordance with Community Policy

[capmorgan]

I sense some nervousnes in your post. The Craibads from Toronto and the Lattices from Arsville will just have to keep guessing how them and all other shorts will be burned.

[LaticelnExile]

This post has been removed in accordance with Community Policy

[PROtrading]

It's PROtrading, not trader! ;-)  But that's ok, you need a vacation! ;-) LOL  You've been at this 7 days per week for the past 6+ months. And I am OFFENDED!  3 day?  I like to close out my shorts end of day of pissible and might trade stocks 2-3 times in a day on a volatile stocks.  This unstable toxic dumpster like this one has me at the edge of my seat

[oexel]

I want to believe this is good news but this is not good news.  FAK.  My $7 options are going to expire worthless.

[Juice004]

Issuing more debt to pay off debt at higher interest rates will not push the ratio higher over 7!!!! stop looking at things from only your perspective and repeating the same debt to ebitda ratio comment in all your posts.thats all you talk about

[patenright11]

This post has been removed in accordance with Community Policy

[Lemerson]

Yes but they did not mention anything about paying off debt in news release. They did mention augmenting their pipeline of products, another deal to buy old overpriced drugs in the works maybe? What would make most sense to me is to buy back some bonds that are trading in the mid sixties and reduce debt.

[YOLO77]

This post has been removed in accordance with Community Policy

[Juice004]

I don't know how they will the debt for cheap but I wouldn't put it past them

[Juice004]

Lemerson, I took the point  on the news release about using the proceeds to strengthen their liquidity position as debt repayments to reduce their annual interest expense and therefore increase net cash flows to improve liquidity. It would have to be lower than 9% rates to make sense. 

[LaticelnExile]

This post has been removed in accordance with Community Policy

[Juice004]

So if they won't be repaying debt than they are just looking for some breathing room as they are strapped for cash based on their internal forecasts.The bond market likes the news as this means they won't be going bankrupt anytime soon. What they use the proceeds for is anyone's guess. Perhaps a portion of it will be used for a share buyback if the stock keeps falling like this or

[Craigbad]

if they aren't issuing debt to pay off debt it is also intuitive to believe that their will be some major downward revisions to price targets. They were supposed to be able to meet all obligations and product launches from cash flows as they are firing on half a cylinder. If they are going to be paying more interest the sliding scale the analysts have been using will make a large difference to

[rad10]

Coupon is 9.5% on a secured note issued in October 2015 with a 7 year term.  Same note is trading at 70 cents on the dollar.  Concordia are clutching at straws if they want to reduce their interest payments and retire existing debt.  Why would new money buy this?????  WTF  MT has to go.

[ryehigh2014]

Please dont spread lies. The note issued then was a HY note. Under AMCO.  Senior secured coupons are at 6%. Senior First-lein will trade at par or much less. No one cares about the secondary market. HY investors sit for the coupon + face value UNLESS distressed. Leveraged markets (which basically means BBB rating or less) is a massive market - NETFLIX debt is leveraged loans. Please educate

[rad10]

Rye high - you are very new to the table.   Respectfully why would I buy a new note from this company when I can get a secured note in the secondary market with a higher coupon at 70 cents on the dollar? Not spreading lies at all - 

[ryehigh2014]

Apologies for any offence. Wait and see. Your not in a credit crunch.  Yields are low. Spreads are low.  I think the market will swallow it up (if it hasn't been issued yet). There might be other features to it. 

[rad10]

No offence taken - I have lost over 40 grand on this one so some new kid on the block calling me a liar is really not a big deal.  It is time for our wheeler dealing CEO to receive a pink slip. The only carrot I can think of is a convertible debenture with a low equity conversion price.  They will not manage to issue new debt on the open market without a gangsta coupon.  Look at

[rad10]

Most stupid post in the last 24 hours?  Good job Rye High a 6% note for concordia............... https://www.youtube.com/watch?v=S13ZLMNQBjc

[ryehigh2014]

You realize it could have been alot worse right? This changes nothing about my original post except that they will not benefit from the basis IF they pay off debt (which was an assumption as to wht can be done with the proceeds). The debt is NOT DILUTIVE - its not a convertible. As well it is callable with a equity clawback if they raise equity via secondary offering (this is not off the table but

[fundtrader]

for one..no new shares to be printed..no dilution, cash infusion ..considering the fact that the current market cap is 250 million 350 million cash injection is huge...

[YOLO77]

This post has been removed in accordance with Community Policy

[PROtrading]

There you go yoyo!  Starting to gain some intelligence?  Have you uped your omega3s?  That's good!  Very good! Nobody wants the bonds!  Why would anyone go for the notes????? "Hello, Bay Street?" "Yes?" "We are Concordia and need to borrow some mo.." CLICK!