Arcan Resources Ltd ARNBF

a surprisingly generous deal....

[teevee]

given current metrics on what proved producing is selling for, I expected about a 35-40% haircut for debentures and zero for equity. I am surprised equity was thrown a bone (12.5% equity in assets via spinco), and that debenture holders were offered about $.85 on the dollar.......I would take this deal and run as fast as I could. With a deal this generous, it is very unlikely another company will step up.

[freenpv]

its not generous. heres why: if you run the numbers assuming equity is about a zero and the convert debt is pro rata new equity, then convert holders get way more by voting no. company will exit the year with 150mm senor debt and 160mm converts and 4200 production with a bit of upside. putting a 80k flowing multiple on the production, which is reasonable considering edmonton light is getting 100

[pennydredful]

Equity  holders   are  getting  money  owed  to  bond   holders.  THERE   IS  NO  WAY   BOND  HOLDERS  WILL  VOTE  FOR  THIS  .  Why  put  money  in  the  pocket  of  Crescent Point  and  Lightstream. Where  are   their 

[rad10]

Very true Penny - the second offer will be forthcoming within a couple of weeks............................................... Cheers RAd10

[jacek99]

Yeah, you believe there will be other offers?

[rad10]

From the same outfit there will probably be an improved offer.  I am unsure as to the ownership of the 2016s (I have 100K face).  I doubt the debenture vote will pass as it stands. 

[nlr2]

Well this isn't what I expected at all. A fitting end to a rather disapointing story. As much as I would have prefered a straight up all shares deal with Lightstream I do see some positives. 1) The meterics for Spinco seem fairly decent. 2) management team of Aspen Leaf seems "elite" 3) Aspen Leaf is backed by very, very deep pockets. 4) finally we will be able to take advantage

[jd43xl]

I agree. Take the money and run, run as fast as you can. Apparently neither CPG nor LTS wanted to lose any more money here.

[notwrong]

This post has been removed in accordance with Community Policy

[rad10]

teevee - this is just a preliminary - I doubt the debenture vote will pass.  Start digging the trenches and filling the sandbags.