Petro Rio S.A. HRTPF

Actually it sounds

[robnhood]

like a pretty sweet deal for the buyers of the debentures.
 They get  interest  payments and  continuing 25% discount on the conversion.
Maybe they can sell this stuff because that sounds to me like a can't lose scenario.
 The only way to lose would be if the company totally collapsed before 1 year was up.
 That's the way I read it.
 We shall se how much is taken up by JG.
 No wonder they were selling.

[robnhood]

The way it seems to work out is that the company gets a loan at a very reasonable interest rate, and the present shareholders get to pay for the 25% discount on conversion.

[robnhood]

Looks like GDS holders don't get pre emptive rights to buy these debs like the HRTP3 shareholders do. Rz pointed this fact out-- ""18.1. Preemptive rights to subscribe Debentures will be reserved for holders of HRT common shares of record on October 24, 2014 ("Shareholders"), in proportion to the share position held by each shareholder on that date ("Preemptive Right

[goldtrust]

This post has been removed in accordance with Community Policy

[robnhood]

GT, IMO, this is a very dangerous raise for present shareholders and especially the GDS holders who are not even invited in. If they do not hit serious reserves then it seems to me that owners of the debentures could begin shorting about a month or so before the 1 year hold period ends driving the price ever lower. On the day it opens they could call for their stock at 75% of the previous 10 day

[robnhood]

  DEFINITION of 'Death Spiral' A type of loan investors give to a company in exchange for convertible debt, which, like convertible bonds, typically has provisions that allow investors to convert the bonds into stock at below-market prices. This can cause the original shareholders to lose control of the company. INVESTOPEDIA EXPLAINS 'Death Spiral' This type of loan is

[goldtrust]

Hood, looks like rzorburn might be right..the crooks are going to bleed this pig dry before hrt goes down the tubes