RE:RE:RE:RE:Not sure it's goodThese are by no means "excellent terms" Cabbie. Given the conversion kicker, the coupon being paid puts this in the CCC-rated bond level which is a "currenly vulnerable' category. Interest rates and high yield spreads are at historically low levels. Plus we are forced to pay 6% for at least 3 years (or $9 million) even if we have $200 million on the balance sheet. The HSBC interest rate was far lower - low single digits (given that it's a floating rate) which I though was a pretty good arrangement. I would have much prefered a floating rate note based off a libor spread.
So why lock yourself in to something, at near-distressed terms, if you have a lot of cash possibly coming into the door very soon....maybe management isn`t as optimistic as some on this board seem to be?
Chi