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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Post by Zosimaon Jun 27, 2011 3:15pm
283 Views
Post# 18770153

Retractible Prefs - A & B - basic info

Retractible Prefs - A & B - basic infoThese prefs have maturity dates when the company must redeem them for $25 a share.  The company may, at its option, redeem for shares rather than cash.  The exchange ratio (how many common you get for your pref) is based on the current trading price of the common (~20 day avg).  However, the limit is $2 on the common.  So if the common shares drop below $2, and the company elects to redeem in shares, the pref holder will take a hit.

In my opinion, the company is very unlikely to redeem in shares, and the common is very unlikely to be below $2 when these mature.
Bullboard Posts