RE:RE:RE:Smart Management I am a bit surprised by this move, and not sure I am entirely clear on the rationale for it.
1. From a debt perspective, aren’t they just issuing other debt (new notes) to pay for the redemption of the debentures? At similar or higher interest rates?
2. From an equity perspective, debentureholders can still convert to shares (so they might prevent some future dilution by redeeming the debentures now, but it really depends on how many people would convert to shares).
What are the benefits of this to the company? And why do it right now?
Long CJ.DB.A
Thanks