LAKE SHORE GOLD CORP 6.25 PCT DEBS T.LSG.DB

I own some debs

[tappenade]

There are 22 months left to maturity. For every $1000 bond I will collect about $120 in interest until maturity then collect the principal of $1000 when LSG redeems my bond. All this regardless of a drop in the price of Gold.  But should the the price of gold rise, the share price will rise and so will the value of my bond.....
The Co will not want to pay a premium to redeem because paying say $103 for a bond (debt) that is carried at $100 in their books will create a loss.Saving the annual interest of 6.5% is attractive to the Co. but remember that this interest s tax deductible.
So what is it going to take to get me to sell my debs?
I don't know !!!!

[bigdaddycash]

I own debs also and agree with you - I have no desire to sell my debs unless at a premium.  However, there are other types of holders of the debs.  For example, a high yield bond fund that may sell based on other criteria than you or I such as yield spreads and who do not put as much emphasis on the convertibility of the debs.  Or, if another holder needs to sell due to a margin

[tappenade]

All debs bought at less than par has three major consequences: 1) It creates a profit for LSG. 2) It reduces the interest cost.  3) It reduces potential dilution. It's a no brainer for management!