RE:RE:So much fabricated rubbish"Aren't loan interest rates also based on the type of debt instrument"
Yes and that is just an extension of what I said previously about interest rates being based on security. Different debt instruments offer different inherent levels of security within their structure.
Loan security has many facets. Risk involved with what the money will be used for, company D/E ratio, level of company income and its perceived sustainability and the pecking order in the event of a default of that debt instrument are some of the components of the loan risk formula which in turn determines the reward (interest rate) necessary to create an acceptable Risk/Reward ratio for that specific loan.
Keith you said you post to help clear up misunderstanding and confusion. Well I am confused as to why he would enact an early payoff of a 12% loan with money borrowed @ 13%? He just threw away the pro-rated portion of that 1% per annum interest difference over the remaining life of the loan. Logic would seem to say that you let it mature then pay it off then. My 30+ years as a professional investor on many fronts has given me a pretty good idea as to why that may have been done and why the document that would explain it is kept secret. Maybe you could get an answer from the horses mouth that would dispell my beliefs? I would really love to hear what he has to say on that subject.
Oh yes, it should not be considered material since the event has already occured. It is just an explanation as to why it occurred so he would not be disclosing material inside information to a select group, so he can speak freely without worry of breaking any securities guidelines...if he so chooses. If by chance the nature of it would somehow violate guidelines if disclose selectively, then a commitment on his part to clarify this in a press release or SEDAR document such as the next MD&A would be fine.
I sincerely look forward to your response.