DISCOVERY AIR INC 8.375 PCT DEBS T.DA.DB.A

Sold another 16% of DADA for $25mm

[sculpin2]

Secured debt paid down by $85mm which is good. The remaining 10% would have value of about $16mm based on this financing. 

 

Discovery Air closes $25-million financing

 

2017-12-22 17:37 ET - News Release

 

An anonymous director reports

DISCOVERY AIR ANNOUNCES EQUITY FINANCING FOR DEFENCE BUSINESS

Discovery Air Inc.'s Discovery Air Defence Services Inc. (DA Defence) has closed an equity financing transaction with a large third party institutional investor, pursuant to which, among other things, such third party institutional investor purchased $25-million of common shares of DA Defence from Discovery Air. Discovery Air continues to own approximately 10 per cent of DA Defence. Discovery Air will use the proceeds of such transaction to, among other things, reduce its secured debt.

DA Defence also recently completed its own senior debt financing transaction with a syndicate of large Canadian financial institutions.

 

[Alejaho]

This transaction proves without a doubt that Clairvest has screwed debt holders in DA, particularly unsecured debentureholders. Clairvest got 74% of DADS for $60mill in debt conversion, at the price paid by this institutional investor, that conversion is worth $115mill, a nice tidy profit for Clairvest. Debentureholders have been screwed out of DA's best asset. Grounds for a class action