RE:RE:Moody great news:These are first lien notes raknkng ahead of the unsecured bonds. Institutional Investors looking for yield with first-ranking security are the ones who will subscribe. Depends on the market for that now. We will all know in a couple of days.
Ranger56 wrote: This is not a good report.
They stated clearly the "outlook is negative".
So with the injection of cash making liquidity stable over the short term, the are now even more over
leveraged, anf the Buisness looks to be very challenged (in trouble).
Read the key statement below in the report..this is not a good report:
"While the notes offering improves liquidity over the next 12 months, it further increases Concordia's leverage at a time when the company is facing a number of business challenges" said Jessica Gladstone, Senior Vice President with Moody's. The change in outlook to negative reflects the risk that the company is not able to sustainably grow earnings given capital constraints and scrutiny on rising drug prices. The inability to grow earnings over the longer-term could lead to an unsustainable capital structure and challenges in refinancing. That said, liquidity remains good and the company has several years until it needs to address refinancing its debt."
My question, will this issue be successful? Who will subscribe to it given the current conditions?