Concordia Healthcare Corp. T.CXR.R

Why did they not Draw on Revolver if Liquidity is a Concern?

[Lumberfeverlong]

Does not make sense.  We are missing a big  piece here...

[InsiderTrader]

Lumberfeverlong wrote: Does not make sense. We are missing a big piece here... I smell someone with a crystal ball who may may have the answer to your question as to why they did not draw on the revolver. LaticelnExile image: https://www.stockhouse.com/Stockhouse/images/stars-mask.png

[Craigbad]

Maybe the revolver is being used. The company already has multiple lawsuits filed against them for disclosure issues. Just sayin

[greatplay]

It's simple! It's a vote of confidence by market. Market is saying, company has enough goods that can give them money with 5% interest. As the result, short attack will cease and stock will recover. Also the notes are probably convertible to shares with price of $15-20 USD. Since nobody wants to buy them now for $15-20 USD, its sounds stupid, but when stock will go north of it, conversion

[Lumberfeverlong]

I hope you are right because now I am confused as hell.

[patenright11]

This post has been removed in accordance with Community Policy

[PROtrading]

Yeah, we know!

[patenright11]

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[patenright11]

This post has been removed in accordance with Community Policy

[PROtrading]

LMAO!!!!    You can't affort a keyboard?  You trade for beer money as well???  LMAO!!!   And this one is real!

[greatplay]

Imagine, you have $2000 in bank account and $5000 ($200 MLN) credit line and have annual needs of $5000. Would you want to pay from account and draw you credit line with high interest? If it's a last resort, definitiley yes. But if you can go to credit market and get more money, let's say $8,000 ($350MLN) on cheaper interest rate, then why not? It gives you vote of confidence that

[Lemerson]

Then why defer half of the cinven payment? 8% interest

[greatplay]

if notes will be with 5%, not 8%... why not? plus extra leverage is always good... Personally I prefer to have extra credit line, just in case

[puma1]

Covenants get triggered off those Revolver loans if they go too deep so this makes sense.