GREY:BXEFF - Post by User
Comment by
shotskion Mar 27, 2010 8:08am
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Post# 16931084
RE: BXE
RE: BXENothing like a good old fashioned sort squeeze. Usually the holders of the debentures are looking for yield in this case 4.75% and are willing to take that as debentures are higher up the debt latter ie the get payed before common share holders do in the case of a bankruptcy. The convertible price is a bonus it if underlying stock price goes up. If you look at the 7.50% debentures they were convertible at $16.00. I think at this point the new debentures look very attractive. My only concern in where will BXE be in 5 years. They have a great inventory of drill locations and land to work with , but my concern is the decline rates. will they be able to finance growth to offset the decline rates. Other than that $5.60 with a 4.75% for 5 years looks like a no brainier at this point.