GREY:CLGRF - Post by User
Comment by
clestoron Dec 13, 2012 9:58am
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Post# 20724333
RE: RE: Financing - warrants
RE: RE: Financing - warrants I am thinking they need roughly $17 mm to refinance existing debt plus another $10 or $15 mm for the 1Q resupply. So a $40 mm debenture would leave $5 to $10 mm in cash on the balance sheet. But, maybe they generated $10 mm in Q4?
Just rough numbers . . .
A convertible would have a coupon around 6%, but a debenture with a "sweetener" (referring to warrants) would probably have a coupon around 12%. Secured debt might be in the 10% range.
But there is a tradeoff to be negotiated between the strike and # of wrnts vs the coupon.
I am just throwing out numbers. They are going to do something before May 2013 so it makes sense to put some thought into this. I wouldn't be surprised if the stock lifts when the uncertainty is lifted.
The entire sector has sold off dramatically (not just CRJ) but many names are off their lows in the last week.