RE:RE:RE:RE:RE:It's a great deal for US With the equity value of the converts now about 25 cents, the balance in the bond is convertible at 28.5 cents for 5 years which makes it a pretty cheap warrant vs the current price. It should trade at 77 cents on the dollar (22/78.5) and instead its trading at 14 cents on the dollar.
Just buy the converts and convert to equity immediately after the exchange closes and you end up with way more shares for the same amount of dollars invested today.
Do the math yourself. It's meaningful.
theTransporter wrote:
Method wrote: Still makes sense to switch into the debentures from the common FWIW. You will lose some liquidity but the stock and bond package (convertible at 28.5 cents) is worth north of $50 but offered for less than $35.
Apparently the arb exists because the borrow cost is so high but long only investors can take advantage of the arb and end up in a better position.
Great to buy into your RRSP and possibly make greater gains than the index of the markets over the next few years just on the interest.