RE:RE:RE:RE:Easy 20%+ yearly return on the debenturesscarface9 wrote: Capharnaum wrote: Around $90-91 for debentures, still 20% return (yearly basis) to hold 6 months. Pretty safe return, imo.
Where do you think they'll get the $45 million? Will they raise the money with an equity offering or some combo of asset sale along with shares issued via PP?
I'm looking at another debenture that just came out paying 8%. Of course, 20% returns sounds better, just trying to figure out the risks. What scenario could take place if they don't have funds to pay in January?
They already had $36M at the end of Q1. They also should be able to generate, outside of changes in working capital, around $3-5M from operations each quarter (around $10M for Q2 through Q4). The completion of the new framework with Symphony also netted in total $16M of cash that wasn't there at the end of Q1.
If they don't want to use the cash on hand, they have several different options: issuing a new debenture, issuing common stock, mortgaging properties, selling properties, they also still had some room on their credit facilities at the end of Q1 ($9.5M on the revolver, $45M on the commonwealth facility).
Othen than mortgages needing to be renewed, the only debt coming up before the debentures is $10M with Magnetar.
Considering all this, I think that the risk is almost nil that they don't payout the debentures due in Jan 2022.