DRI Healthcare Trust T.DHT.UN

New Financing

[mjh9413]

 Am I understanding this??!
From NR:
"...will not be redeemable by the Trust prior to December 27, 2027, except in the event of a change of control of the Trust, in which case the Preferred Securities will be subject to a mandatory redemption.

The interest rate on the Series A Preferred Securities will increase to 10% per annum if any of the Series A Preferred Securities are outstanding on January 1, 2028..."
So, they have to pay  $6,6MM cash interest each year til 2027 and if any prefs remaining after effectively 12/31/2027 they increase int rate to 10% and ,of course, it might all be outstanding on that date given that is when repayment can first be made. To avoid outstanding they need to accrue $95MM by that date (making it unnvestaable money) or else get new financing. In addition to all this negative, my biggest beef about this deal is that we know the money is not deployed immediately so it is all cost and no income (for how long?) on every dollar not deployed.
I must havee it wrong.