Concordia Healthcare Corp. T.CXR.R

Distressed Debt: The 7% Unsecured notes are 30.5... GULP!!

[CYBERPUNK]

CXRCN CONCORDIA INTL PRICING UPDATE

Posted on  January 3, 2017

Security B Px A Px A YTW A Spd Amt Out Payment Rank Moody Notes CXRCN 9   22 84.000 – 85.000 13.034 1104.439 350MM 1st lien B2 CAME 10/6 PAR CXRCN 9½ 22 35.000 – 36.000 37.047 3505.666 790MM Sr Unsecured Caa3 CXRCN 7   23 30.500 – 32.500 33.202 3121.340 735MM Sr Unsecured Caa3

 

[meetoo1600]

It's not because of fear of fear that the company is going bankrupt.  That will not happen anytime soon.  It's because they are locked in until 2023 at 7%.  As long as Concordia pays the interest, these bondholders can do nothing but wait until the bonds become due, and that is a long time to be stuck with a 7% yield when equities and other potential investments are or can

[CYBERPUNK]

The coupon is 7% buddy.  The yield is north of 37%.   You should spend some time in understanding how the debt market works. Some would disagree with you that the bondholders can do "nothing"  That is why everyone has lawyered up.  The unsecured bondholders have secured Akin Gump to represent them, and if you are an equity holder you have been turbofuccccked

[CYBERPUNK]

meetoo:  You can see the "Yield" in the upper right corner as 33.256% on this particular day. I do not have a Bloomberg Terminal (as they cost over $50K a year) or I would post a more recent chart and so I borrowed this one from twitterverse.)  The 7% is the coupon value.  So don't confuse the coupon value with the note yield. Keubiko ‏@Keubiko  13

[meetoo1600]

Believe me, Punk.  I know how to read the debt markets.  I stand by my comments. It is hard to imagine management as incompetent and (in my view, corrupt) as that of Concordia over the last year, with results that speak for themselves.  But things are slowly changing, and the likelihood of a default on these bonds, or bankruptcy of Concordia in this new calendar year, is zero

[CYBERPUNK]

meetoo:  Then why has Concordia retained PJT Partners and Skadden ?  

[CYBERPUNK]

TIMESTAMP this post! 

[rad10]

Quote of the year so far!  If it was just the liquidity I would be scooping them up by the truckload........................ The pricing of the bond series shows where the faultline is.  Unsecured holders are unlikely to recoup their investment.  The capital structure will get rearranged at some point.  Equity and unsecured are priced accordingly

[meetoo1600]

Of course it will get rearranged at some point, but when???  I am not investing in this company.  Who would.  I'm playing the stock, and right now it has everything a trader wants. Fear, risk, and corresponding volatility.  Let's face it, the short play is over with this stock.  30% recognized that a couple of weeks ago.  Maybe a few will try to squeeze a

[SteadyHandsStan]

Everything a trader wants?  Seriously. ?   You think this is movement?   It is dead money

[Rookie89]

if it's a dead stock then why are you still here? move on

[SteadyHandsStan]

Too laugh at losers like you.  

[Rookie89]

Already man, laugh all you want. But time is a funny thing, it always changing so just be careful out there. In 2016, I paid the price by not listening to shorts like latice and craigbad here, they were correct on  all their calls from A to Z and thats why this thing fell so hard. In 2017, they have all left and now we have bunch of shorts who have been proven wrong few times now so it will

[SteadyHandsStan]

Thanks man!  Its an amazing short and exceptional clusterf***ks like cxrx don't come along that often.  Good luck to you as well, brah.