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Advent Convertible and Income Fund T.AVK


Primary Symbol: AVK

Advent Convertible and Income Fund (the Fund) is a diversified closed-end management investment company. The Fund’s investment objective is to provide total return through a combination of capital appreciation and current income. The Fund will invest at least 80% of its managed assets in a diversified portfolio of convertible securities and non-convertible income securities. The Fund will invest at least 30% of its managed assets in convertible securities and up to 70% of its managed assets in non-convertible income securities. The Fund may invest without limitation in securities of foreign issuers. Fund invests in various sectors, such as technology, financial, communications, energy, basic materials and other. The investment advisor of the Fund is Advent Capital Management, LLC.


NYSE:AVK - Post by User

Comment by jdn55on Dec 12, 2016 1:28pm
110 Views
Post# 25586792

RE:RE:RE:RE:RE:RE:Worth the strong premium to AGG?

RE:RE:RE:RE:RE:RE:Worth the strong premium to AGG?FWIW I think a AGG-AVK combination would be a very interesting transaction. If the AVK warrants were excercised they'd have > $25MM CAD in cash (including current cash in the treasury). Add in a modest $25MM - $30MM USD in debt financing and there would be more than enough cash to get Kobada into production at 50K - 60K per year.

If you upped that debt financing to $50MM per year you could basically double Kobada's production to 100K oz per year. Based on that level of production Kobada would free cash flow approx $40MM USD per year which would greatly assist AVK getting into production with minimal dilution excepting the acquisition cost for AGG.

I'd be willing to tender my AGG shares to AVK for 15 cents a share given the huge potential upside for a combined entity. If AVK could get their SP back up to 30 cents they could have AGG by issuing 150MM shares or so. That's not a lot of dilution if you had a clear path forward to a 300K - 400K Mali based producer.  What's 300K - 400K with good deposit economics and lot's of blue sky worth to an BTO, EDV or Randgold??? 

Not saying this will happen but IMO it presents and interesting "what if" scenario.  
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