OTCPK:MGMXD - Post by User
Comment by
BobTheKnob2on Sep 30, 2016 5:00pm
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Post# 25297004
RE:Bond ...Iceland Bond
RE:Bond ...Iceland BondNot sure if I am reading this correctly. The way the press release is written it sounds as if Alterra (or at least a subsiduary of Alterra) is loaning 50% of the loan amount outstanding to another indirectly 50% owned subsiduary of Alterra.
Here is the quote from the release:
Under the agreement, OR will continue to hold 50% of the outstanding principal (approximately $36 million). The extended bond, issued from an Alterra subsidiary, will have substantially the same terms as the bond it replaces, except for the reduced principal, a maturity of 18 months, and a revised coupon of 5.0%. The extended bond is non-recourse to Alterra, with security consisting solely of approximately 17% of the outstanding shares of Alterra's Icelandic subsidiary, HS Orka.
It almost sounds as if Alterra is loaning money from one hand to the other hand with interest earned going from one pocket into the other.
There may be some further clarification of this in the press relase due next week which will provide further details on the other 50% of the loan.