RE:Understand What Divesting A Minority Stake MeansHard to figure the math on it. PE would want a return on capital invested but they would have to retire current debt at a premium to where its trading at. Might be some upside on the bonds if you were lucky enough to know which ones it would be applied to. I would also assume PE would want to dip in on cashflows but wouldn't bond holders still come first as far as security? If they actually issued shares, it would be a whack of dilution and the bondholders would still be first in line? Maybe its just another fluff piece leaked to benefit an exit for some like last time.
LaticelnExile wrote: It means that they can't sell the company outright so they are trying the next thing to help the balance sheet.
If they have no problem and business is so good, ask yourself why they have to do this.
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