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Yellow Media Inc T.YLO



TSX:YLO - Post by User

Bullboard Posts
Comment by poneon Feb 18, 2012 7:25pm
259 Views
Post# 19554844

RE: Depends what "is" is.

RE: Depends what "is" is.

I interpret that to mean that they want to refinance the bank debt with another MTN - probably secured and sugar-coated with  lots of dilutive warrants - in order to get rid of the bankers who are in their face 24 hours a day.      If they could do a new financing, then they are in a position to start getting creative on MTN repurchases.

 

Unfortunately, if they pull that one off the MTNs recover 50% of their value and they lose a rare opportunity to buy back debt cheap.   The way they should have played this game was to structure a credit line that let them use the money to buy back debt cheap, then create the doubt in the market's mind that allowed the debt to sink in value.

 

I get the feeling it's just the wrong management team for the problem they actually have now.

 

Bullboard Posts