RE: proposed financingThis financing isn't going out at a premium at all - it is a license to rip off existing shareholders on a "Best Efforts" basis - and since IAE needs the $70MM to close the syndicated financing package, they'll drop the price to whatever it takes to to fill the book.
They couldn't have floated this at a worse time in the last 3 years imo. Sentiment is lousy despite near record crude prices. Value is virtually meaningless when there is blood in the air. Remember, just late last year they floated a $100MM PP at $3.65. Today, with reserves and crude prices up ~50% and substantial production and cash flow by year end, IAE will be lucky to float a $2.25 PP when an equivalent price based on the last PP adjusted for reserves is $5.50. If that isn't scandalous, I don't know what is.