STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

Debentures

[outbasket]

I noticed the debentures STB.DB.U are down to 76 and falling fast.  They only have 2 1/2 years till they mature.  Any thoughts on the ability of STB to refinance those debentures?   Mr. Market is either irrational or is predicting the company will have difficulty rolling the debentures over..  Yield to Maturity is 18% which is better than the stock.  I think those debentures can be converted to stock at a 5% discount if they can't come up with cash.  The stock price would probably plummet if that occurred.

[righand2]

Debentures tend to trade in tandem with the common share price, so the slide doesn't reflect anything but that. 

[BlueCollar51]

You are aware that STB.DB.U is a USD Debenture. As Always; Do Your Own Due Diligence; It’s Your Money !!