RE:RE:RE:RE:RE:RE:Lots of Insider SELLING - NO Buysbigreturn11 wrote: Ares is investing $841 million but only a maximum of $109 million of the proceeds is in common shares at $53/share as I understand. The remainder like convertible debt (as I understand) paying 6.5% to 12% interest and an option for Ares to convert at $60/share.
Yes, I should have added that the common shares were an extra $109M (over the $841M for the prefs). The prefs are effectively paid 6.5% for the first five years, then an additional 1% thereafter per extra year, up to 12% max.
In any case, the pref shares and common shares are both ranked behind the debt for collection purpose, and the $950M total in prefs and commons is equal to about 59% of the current market cap. It is still a substantial investment in the business, over and above the line of credit and term loan for the acquisition of Link Group.
In total, Ares will likely have over $3B invested in DND in debt, pref shares and common shares (when Link group is acquired, the lending syndicate for the term loan doesn't show the split so I'm implying that Ares would be around 1/3 of that based on the NR). That's close to 2x more than what current shareholders have at stake at the current market cap.