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Concordia Healthcare Corp. T.CXR.R



TSX:CXR.R - Post by User

Comment by Lumberfeverlongon Oct 04, 2016 11:56am
83 Views
Post# 25307006

RE:RE:RE:RE:RE:2023 Bond up to $70 yld 14% This morn

RE:RE:RE:RE:RE:2023 Bond up to $70 yld 14% This mornBonds are moving up becuase the market anticipates a transaction that will lower debt substantially which means bonds will be retired via proceeds of a capital raise closer to their face value.  That capital raise will likely involve convertible preferreds at a much lower yield than the higher cost bonds.  There might also be a common share component to it upfront, but not one that will wipe out current shareholders.  The shorts are working overtime today becuase they know the day of reckoning is coming soon and it is theirs not the longs'.  The company still generates in excess of $200M in annual free cashflow.  Imagine how much better this company will look once they do a transaction that reduces debt significantly.  Sure you can buy the bonds and watch them go up close to face value and make 30 or 40%, but the shares will increase in multiples from here.  That is why the short chatter has gotten so intense since yesterday.


cg16 wrote: So is it correct to say that the bond action right now is opposite to the short thesis? 


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