RE:RE:RE:RE:RE:RE:RE:Shorters die tomorrow...Coupon is 9.5% on a secured note issued in October 2015 with a 7 year term. Same note is trading at 70 cents on the dollar. Concordia are clutching at straws if they want to reduce their interest payments and retire existing debt. Why would new money buy this????? WTF MT has to go.
LaticelnExile wrote: Juice004 wrote: Lemerson, I took the point on the news release about using the proceeds to strengthen their liquidity position as debt repayments to reduce their annual interest expense and therefore increase net cash flows to improve liquidity. It would have to be lower than 9% rates to make sense.
The point that Lemerson has made is correct. The CInven deferral was at 8%. So why defer and pay 8% if they are, as you have suggested, reducing their annual interest expense? The press release makes no mention of debt repayment. This is additional debt. It is intutitive to believe that they couldn't convince Cinven to take an equity position in lieu of their earnout payment.