RE:RE:Note financing -- looks good
This looks like an excellent deal to me. Not only is there an interest saving but also, in the event of things going wrong (e.g. a gold price tumble), EDV can eliminate this debt and thus strengthen its balance sheet by converting with only ~10% dilution for shareholders. A great option to have in your back pocket - and would be reflected in the firm's credit rating and rates it can obtain for bank lending. However, note holders may take short positions in EDV stock, to hedge their exposure to SP movements. That may have been reflected in yesterday's SP action. Mark B