GREY:CLLZF - Post by User
Post by
leveraged1on Aug 15, 2013 8:19pm
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Post# 21674797
Financing options
Financing optionsOne financing option, that Bloomer stated he was not pursuing, might be to have CLL's bondholders release some percentage of their existing debt in exchange for an equity position. The more debt released in exchange for the least amount of equity the better for the common shareholders and vis versa better for CLLs bondholders. My understanding is a significant portion of the bond holders are also common shareholders. In this way what the percentage they release from their bonds may be picked up by them on the increase in value of their common shares. That is assuming the debt reduction (sprucing up the company's balance sheet) translates into increased share value by the market. Sort od an ''in house'' financing.