DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A

RE: Q3 2012 Results

[Mongoose11]

It's really too bad that the current management got stuck with the burdensome debt load from the now departed previous regime.
As far as I'm concerned, the fact that such a profitable/dynamic outfit has to pay interest rates of 8 to 10% in today's low interest world is greatly hampering their opportunities. I quess the only way they'll be able to get out of the corner they're in would be to "profitize" (i.e. earn profits and pay down debt) their way out which will take time. If I was the CFO, I would counsel them to buy back their convertable debentures on the open market and retire debt that is currently yielding over 9% slowly but surely. That would be the best investment they could make IMHO.