New Bond Issue to Refinance Old Bond Provides Clues on StockAnyone realize why they structured this 1st Lien bond the way they did? I would offer up that the covenants in the new bond (Excess Cash Flow Sweep, Mandatory Paydown of bond on Asset Sales, Call Features etc) are all designed to delever this company quickly so it can be sold within 12-18 months imo.
With the stock selling off this week on the back of a slight miss on 2017 top-line (even though Ebitda will be unchanged from their estimate due to cost cutting...and the new CEO hasn't even started cutting costs yet!!)) Equity investors are likely not paying attention to such critical analysis of the most important part of the capital structure being this bond.