Trader deal done, cash on hand, dividend cut inevihey guys, first post here, (in YLO board)
Money from the trader deal being used to buy back Debt, I assume prefs, conv. debs. Heck they can buy them at a 40%+ discount to face. Saving the company a ton of coin.
BMO out with a note reminding us that they can pay back the 'A' series preferred share with common, which could pour another 150 million potential new common shares onto the market. Though I would be surprised if they did.
https://research-ca.bmocapitalmarkets.com/documents/5cdb7067-e850-4382-9f8f-a4d588e18027.pdf
Be cautious here with the common shares guys. We all know the dividend cut is coming. If you really believe in the company, you should stick to the prefs, ylo.pr.b, ylo.pr.d, both trading at 12-13$ yielding somewhere between 10-14%, with these things trading at a 50% discount to face, the company will almost certainly be looking to buy these back. Plus, once people realize they aren't going bankrupt and everything is 'ok' the prefs will trade higher, also, there is a 43 cent dividend coming on september 10th for ylo.pr.d
good luck all!
Cheers
Canuckl