Concordia Healthcare Corp. T.CXR.R

negativity

[grantoue]

no bank lends money without researching the company and it's financial plan.  they recieved the majority of the money in the last 8 months. they had 2 drugs that were wrote off because of competition from other companies. this step was over done in my opinion because the drugs will still be produced. If i am wrong please enlighten me.

[kstantzo]

You are wrong.  The banks negociated the large loan to acquire AMCo a year ago.  The transaction was made in October 2015.  At the time, banks take what they are given and, yes, will check into it but they mostly look at the numbers of the audited financial statements and audit reports.  They would fly to London, be wined and dined at the finest restaurants, go to great venues

[grantoue]

you have explained the reaction very well, no bank lends billions of dollars on a great weekend of indulgence. It does not work like that and you know i am correct. 

[oexel]

You'd be surprised grantoue.  Banks arent going to speculate about the future when making loans.  At the time, I'm sure AmCo looked like a money machine and given the strong growth, they wouldnt have asked a lot of questions.

[kstantzo]

You are correct.  These deals are not done over a weekend.  A deal this big is gone over a number of weeks and months.  Lots of due dillegence and "relationship building" between the key parties. I am just highligting the partificants are humans. Not 100% logical beings. In this sector, they surely don't have a noble cause since they are in the business of buying

[Craigbad]

The way it usually works is a bank underwrites a certain amount of bonds or shares, sells them to investors and reaps a big commission. They usually make out like bandits. If i recall correctly, they had trouble selling Concordias, which would mean they probably got stuck keeping a certain amount of the debt and/or shares themselves. Part of the underwriting is they commit to a certain amount for

[kstantzo]

You are confirming my worst fear here.  I'm ready to move from RBC to another bank if there is one that is more ethical.  I'm guessing they all "play" the same undocumented rules at our expense? Very sad.  How many were fooled by RBC's predictions which were very high in spring!  Do they ever get pulled in to class action suits?  Recommending on one

[Craigbad]

Its all legal/ethical. They all play the same game. The investment bank gets a "story" from the company that they can sell to investors to buy up shares in an issuance and give the company that issued the shares say 85 cents on the dollar for every dollar they sell. They don't really care what happens to the shareprice after as they already collected a fat commission, although most

[grantoue]

the company had 143 million in free cash flow in the second quarter and yes it has 3.2 billion in debt. I do not see a problem with paying down the debt . unless something really bad happens. cinven owns 8 million shares . the only thing i can see that happened was the cfo was not forthright with the board on the challenges percieved in the competition with two drugs. that the company bought from

[oexel]

It's funny because everyone expected at least a proposed bill to control price increases.  I'm sure the US will follow suit, especially if Hilary gets elected but given how much bad news has come out, eventualy there will be a straw that breaks the camel's back. Also, I would say that's more the CEO's fault as it falls more under strategy than managing finances.