Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Post by Baxter4on Sep 28, 2011 11:58am
261 Views
Post# 19093451

Preferred A's

Preferred A'sI've been reading the original NR regarding the Preferred A shares. From what I can determine, starting next March the company has the option of paying out the sharholsers at $25 a share (as if) or issuing common shares in exchange, which would mean receiving about 85 common shares for each preferred share at todays price.

Starting in January, 2013, the preferred A shareholders have the option of cashing in their shares at $25 a share. The company probably could not afford to do this unless they have paid down the 500MM$ in debt which would mean the issuing of common shares is the more logical path forward for the company. Either way, won't the preferred A shareholders get $25 worth of value for each share, plus a 30% dividend in the meantime at the current price?

What am I missing as this seems too good to be true?
Bullboard Posts