GREY:WFREF - Post by User
Comment by
PUNJABIon Dec 12, 2014 5:06pm
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Post# 23226005
RE:Debentures not trading well
RE:Debentures not trading wellThese are convertible debentures. It is not pure debt that has to be paid a t maturity. At maturity or before the holder only get shares of LRE at $7.40 a shares. No cash for principal, but till maturity are paid interest.
You can buy shares for $1.20 in the market why would you buy debentures & would eventually get shares at $7.40 & interest payments.
Actually debentures are doing relatively better based on conversation price of $7.40
I think at these prices & lower buy back is better option than dividend.
They should & will cut capex & divided. The stock has priced it already.