OTCPK:ARNBF - Post by User
Post by
pennydredfulon Aug 06, 2014 10:30am
263 Views
Post# 22813261
This deal is a rip off for 6.25% bond holders
This deal is a rip off for 6.25% bond holders
At the offer price of 82.50 6.50% bonds maturing Oct.31 2018 yield about 11.72% to maturity . However at the offer price of 82.50 the 6.25% bonds maturing Feb.28,2016 yield is19.64% . To match the yield being offered for the 2018 issue the price that needs to be offered on the 2016 issue is about 92.375 or 10 higher than currently to yield 11.72 % the same as the 2018 issue. . Therefore I have voted my 2016 bonds against this deal and suggest you do the same.