RE:RE:RE:RE:RE:RE:RE:Stars Prices Offering at US$38. Closing Tuesday 26thsolarman2013 wrote: We are seeing the expected dip this morning, yet this is natural as part of any dilutive news. What we have however is a huge show of confidence in having priced the stock at near its all time high and still sold out (and even allowed an over-allotment). We still have no Kentucky news built in, although I have to believe that investors putting in this kind of money have a relative degree of confidence in its outcome.
Enjoy the weekend. I expect that by end of next week or beginning of week following they are ready to close the SKYBET deal with all cash in hand needed to do so. They did mention "early Q3" as when they wanted to close it, and this is all in keeping with that expectation. I suspect its also to get as much of the SKYBET earnings into the Stars books as possible for their back half of the year.
You really need to be aware of mean reversion. Stocks often follow this pattern which is not correlated with news.
I wouldn't call the debt offering a dilution, they have to assume that debt for the SBG no matter what, a public offering of unsecured debt is prudent for a tranche.
The key piece of information is missing what the interest rate is and the details are not on Sedar yet.