RE:RE:Usual play on conv. deb.With 15 yrs of TSX experience (which department?), JHFFL analysis seems a bit...short.
Perhaps mine is too, but...
RJ had to enter into the deal for a fee. QTRH's PR refers to use of the "net proceeds". I cannot imagine they are just referring to legal fees. RJ are not going to raise 50m for nothing at all except the chance to flip the 50m to their clients for say 52m. No way RJ did not already have clients it believed would line up to buy the 50m at $1,000 par.
If RJ flips to their clients for more than 50m or in excess of $1,000 par, how happy will QTRH be with RJ? My view is the risk and reward for what the market eventually values the 50m debentures will rest with the ultimate investors and how the debentures trade - a function of the market and supply and demand etc.
Finally, the comment copied below fails to recognize that many debenture investors want just the 6% yield, and will short the stock to protect their invested capital.
:"If you think the QTRH sp is going to fall, just short the stock and forget about the debenture."