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IBI Group Inc T.IBG.DB.E

Industrials
IBI Group Inc. is a global design and technology company. The Company offers a range of services, including architectural controls, architecture, bridge engineering, civil engineering, construction management, data analytics, design technology, development engineering, economics/financial analysis, electrical engineering, energy solutions, engineering, environmental assessment, geomatics/land surveying, highway and road design, and indigenous engagement and relations. The Company¿s services also include interiors, land use planning, landscape architecture, mechanical engineering, municipal infrastructure, operations and maintenance, parametric design, placemaking, planning and urban design, public outreach, research and development, software development, systems engineering, traffic engineering, transit planning, transportation engineering, visualization, water resources management, and water/wastewater. The Company has over 60 offices in major urban centers across the globe.


TSX:IBG.DB.E - Post by User

IBI Group Inc
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Comment by HamSandwichon May 09, 2016 11:46pm
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Post# 24856513

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:nice lil breakout to 52wk highs on ibg....

RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:nice lil breakout to 52wk highs on ibg....
nkbourbaki wrote:
HamSandwich wrote:
Calgaryrider wrote: If the stock drops from $10 to $5, the debs will also drop 50%


lol, no.


Isn't this approximately correct?

The coupon is only 7%, so any substantial premium to par in the debs is coming from the convertibility.  I can't see why they wouldn't track the common, either up or down, provided the common is at-or-above $5.

If the common is at $10 then the debs should be around $200 per $100 face  -- of course a bit higher because of the coupon, depending on time to maturity.   If the common drops back to $5 then the debs should retreat to a bit north of $100.  So the haircut in the debs would be around 50% as claimed.  

I was referring to downside protection that is offered UNDER the conversion price. If the market shits and the common drops from $5.50 to $4.00, I would not expect the debs to drop in tandem.  



It's a rough approximation, I supposed it's not terrible.  Although there is some stickiness around par.

But yeah all of the protection is below $5.00.  The protection is massive.   Here's my calc based on today's closing price.  Hope the pic embeds.

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Dealroom for high-potential pre-IPO opportunities