Sherritt International Corp T.S

The Notes

[Oaxacan]

Is anyone seeing levels on either of the notes? Which dealers if any are active? 

Thanks

[Contrarian333]

NBF SCN 8½  26 84 - 89 SCN 10¾ 29 56 - 61 Generally NBF and TD are most active in making a market on the SCN issues.

[Oaxacan]

Thanks!

[Contrarian333]

Of course, if you're a retail investor dealing with a retail bond desk (like say Canaccord) you can expect to get hosed on the spread.

[Oaxacan]

I hear you. 

[Oaxacan]

I took advantage of the company's $90.00 bid for the 8.5% notes a few weeks ago and noticed the notes were reently trading in retail volumes in the $76.50 to $78.00 range according to the IIROC website. At those levels  I would repurchase the notes I sold to the company. Unfortunately my broker has no order flow in the name.

[rkhosla]

I am curious. Did you get 100% fill?  They took all that you tendered?

[VerificateASAP]

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[Oaxacan]

Yes sir, every single one! And the company will likely be back looking for more.  Sheritt will likely have to pay up to attract more sellers, as the fewer notes  outstanding imply less risk to the balance sheet and the remaining outstanding notes. A benign EV metal environment like we are in now should allow the company to generate plenty of free cash flow. An easy use of the cash flow

[rkhosla]

Well your arbitrage idea (buy at market, sell at next tender) is quite brilliant.  I had actually thought of buying more bonds when they were down around $30 but held off as I am so overweight the common share and truly believe they are going to $2.50 or higher in the medium term.  I am a victim of the haircut. I still have a holding, small, of both series.  but your idea is quite

[Oaxacan]

Easier said than done. Being a retail investor I am at the mercy of my brokerage firm which does not have flow in the Sherritt notes. It is much easier for Contrarian ans EarnieandBert to access liquiidity I am sure. 

[VerificateASAP]

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[FrozenInOntario]

Interesting observation.   I know nothing about bond trading, however, I did notice that the IIROC prices for the last 3 months peaked at 84 84.5 which is lower than the company bid.   So I would expect that that the spread is what the dealers are extracting before commission of course.   Also noted that the 76.5/78 range started on December 7.  The BOC raise

[Albatross]

Yes the more debt they can retire at a discount is just extra cream on the cake.. which Strato can shove up his you know what 

[VerificateASAP]

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[VerificateASAP]

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