RE: Bad Management - correctedIgnore last message because I didn't write what I meant to. I meant to say if a bunch of folks "tendered" not unstapled. Since it screwed up the meaning, I'll repost correctly.
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What they did was (1) create a large debt load (for unit holders through the $5.32 of 14% stapled notes) and then (2) refinance some of that debt thru the sale and lease-back.
If,, and it's an "if" we don't know the answer to yet, a bunch of folks tendered their notes, the interest burden on Taiga stock will decline dramatically and the net result is (3) safer and ultimately higher stock dividends, plus 14% notes for the folks who continued to hold them, as well as a higher quality of the remaining outstanding debt. The stock should trade around 9-10% if there was a significant tender (or $2.56 to $2.84) and rise if they increase the payout in a few months. The notes should trade a little above par (say $5.50-$5.70), and we should have a total unit value in the range of $8.00 to $8.50, and rising if stock payout can be increased.
Besides which, for us Yanks, the unstapling gets us out of paying Canadian withholding taxes in our retirement accounts, which we had to pay for an income trust.
Now I think they might have been able to do a better job of this process, but I understand what they were doing and why they were doing it - because the stapled trust never reached its potential.