RE:RE:RE:too much leverage - market is telling Boralex
These conv. deb/2017 are very costly to BLX;
Every dividend paid to shareholders reduces by a like amount the conversion price of the deb.
You may not be aware of it but the actual conversion price is down to about $11.85.
So these deb cost them the interest AND the dividend (in the form of a reduced conversion price).
They can redeem them before sep 15 at $125; a less onerous option is to wait until sep 15, at which time they can redeem them at par ($100)
By this time the conv price will be about $11.60; So if the stock price is higher than that, deb holders will rather convert to stock than receive money.
The number of shares will be increased, interest cost will be slashed.
The conversion ratio ought to be 8.6 shrs for every $100 bond (up from 8 shrs )