? The way I read it the notes will be just over 2% lower interest rate than the loan they have now.
Further and here I may be mistaken but it may not require immediate payment of interest.
As I see it, this is a substantial savings even with the penalty of the first term loan.
Now if they can get the share price up from cash flow we will se the debentures converted and likely a raise to pay this new refinacing back and the 150million for the expansion.
The advantage of the raise we just did and a loan increase is that this new money pays the bills while the cash flow is all profit per share. We should see stronger numbers this year.
As opposed to a mom and pop company who makes their markup on each bottle of pop and cant raise money by selling shares. A company that can do this offsets their expenses with the fund raise and shows higher earnings from the cash flow coming in.
Although I am not thrilled with the share price I think we will see a series up stock upgrades to strong buy with higher targets from bigger institutions in the near future.
My 2 cents