GREY:NMKEF - Post by User
Post by
Tcheckon Sep 20, 2019 9:12pm
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Post# 30150513
nothing wrong with canceling the bonds
nothing wrong with canceling the bonds - Better market conditions: in a low interest rate environment, an issuer can exchange its bonds for ones which pay a lower interest rate, resulting in cheaper debt.
we shouldnt pay more than 2 % (1 %) interest .over 10 % is like getting a loan with a credit card .
in this low rate environment canceling these bonds makes sense .the project carries much less risk since pallinghurst stepped in .the loan is safe .
the company will free a lot of cashflow with this move .
will nmx buy back the bonds ?