TSX:LSG.DB - Post by User
Comment by
bigdaddycashon Nov 15, 2014 11:40am
485 Views
Post# 23132391
RE:Does this help ?
RE:Does this help ?this is why the debs are a good play for some. although the deb holders do not enjoy stock appreciation below the $1.40 price they do beneft from any price above $1.40. they also benefit from the income (I picked up a feew debs myself at below par where the yield to maturity was about 9% - pretty good looking at other alternatives). also, do not forget, if LSG became insolvent the deb holders are in front of equity holders for any proceeds of a liquidation. drawbacks of debs are that they do expire in 2017 so if LSG does not appreciate by then they are out oof luck but do get their priciple back. also, if interest rates jacked then they are exposed to interest rate risk but I am thinking that LSG share price would also jack in this situation so deb holders woould be incented to coonvert anyway. I hold both debs and equity at this point. gltals.....