Not What I was ExpectingBut I do not think we have the full picture yet. A $350M offering is huge and way more than what they need to just get more liquidity. Let's break it down.
The offering is for up to $350M and not for $350M so it could be for far less.
It also appears they are testing the market. The terms of the offering will be determined by the market as the notes are being marketed to potential purchasers. That said, they might have their private equity investors lined up so the terms could be favourable.
Also, as first lien notes, they could potentially get a relatively low interest rate and then make an issuer bid for more expensive notes and ultimately decrease their overall debt expense.
My hope was that they would issue convertible debt or convertible preferreds.
Anyway, let's see what addiitonal details get released tomorrow on the company website.