RE:RE:New Press Release - Pelham Investment Partners LP Files Advance Notice of Nominations for the Election of a New Board of Directors of Nickel 28 Capital Corp. at the Upcoming Annual General and Special Meeting of ShareholdersIt seems clear that the entry of Pelham has woken up mgmt and they (or Pelham) are driving the share price up. I will definitely vote for the Pelham directors as NKL remains undervalued.
My big question remains: NKL can prepay the construction loan and increase their shareholding almost 40% to 11.3% of NKL. I can't find the construction loan interest rate, but why can't mgmt borrow $55m to prepay the construction loan and receive 40% more in distributions, using distributions to payoff the new loan ASAP? 40% more in distributions has to far exceed the interest cost on a new loan. At a minimum, mgmt should undertaken and make public an analysis of the pros and cons of incurring new debt to prepay the remaining construction loan.