RE:RE:RE:RE:Why does this feel like another play by the banks . ..Convertible debt always has a lower coupon than regular debt due to the convertability feature. However, the amount of debt in the form of convertibles debs for CJ was a hell of alot less than the ~560 million that is needed in the case of ATH
That being said, CJ still had to add some pretty substantial sweeteners to get their debs rolled. Coupon was raised from 5.25% to 8%, and the conversion price was lowered from $10.50 to $1.25...looking at a recent new releases for CJ, it looks like the debs got converted into shares, which is unsurpising considering the share price of CJ was basically double the conversion price (prior to this recent pullback)
Backinblack1000 wrote: What was it, convertible debentures at cj.to for 8%?....Seemed to go through before Edwards stepped in....and that was not that long ago....and then of course, there was some issue with national (?) and cardinal............so sometimes, not having the banks call the shots for the company,it might be better to go with the notes....imo....just abit more flexibility??
Say a company like cpg.to, of which i hold shares, I often wonder if it is the ceo and bod calling the shots on ncib or the banks....for example...............imo...smpfld...glta
Chris007 wrote: Unlike most other small-mid caps, the long term debt (lol, short term debt now) is in the form of notes, rather than bank debt, so atleast ATH is not entirely at the mercy of a bank or bank syndicate.
The real question is, what is the market appetite for small-mid cap, junk grade, canadian energy notes/bonds?
Nothingmatters wrote: Class action law suits are for those scenarios only.
Canadaforoil wrote: to not offering financing, watch the stock price fall, and then sell the company for pennies to other major bank customers. We need protection from games like this, it isn't fair that these companies get hammered and are sold for pennies then start up again under another name and are now profitable, but privately held.