STUDENT TRANSPORTATION INC 5.25 PCT DEBS T.STB.DB.A

more BS from a bunch of hooligans!!

[bychoice]

An $86M issue was just completed on March 6. The share price has tumbled from the $7.20 issue price to $5.93, at closing today

March 6, 2015 (GLOBE NEWSWIRE) -- Student Transportation Inc. ("STI") (TSX:STB) (Nasdaq:STB) announced today that it has closed its offering of 11,983,000 common shares of STI (the "Common Shares") at a price of C$7.20 per Common Share for total gross proceeds of C$86 million.

TONIGHT...........a new $41M issue @ the ridiculous price of $5.40
Tomorrow is going to a bloodbath.
Disclosure: I own 13 000 shares in various accounts

THANKS VERY MUCH!!!

[d_trump]

it's not a new issue - its a block sale by an existing shareholder (SNCP Participation, a French company).  None of the proceeds go to STB, there is no dilution. still may be ugly tomorrow but should bounce back quite quickly

[bychoice]

Thanks for the updated info.  Why would a price of $5.40 be set? $5.75 would have been quite a discount to the closing price, today??

[chipshet]

I am in blocked trade, for 1000 shares

[d_trump]

The price is negotiated by the seller and the banks.  I assume its a bought deal meaning the banks have guaranteed the deal - so they will only do this at a price that they know will be fully subscribed.  The alternative for the seller is to sell on the open market but that would push the price down huge.  STB has no say in setting the price since they have no stake in the deal

[indoubtgetout]

No bought deal - best efforts. SNCF is likely selling a bunch of holdings, not just STB - they probably need the money for something. So best to assume this not centric to STB. More importantly, maybe this is why STB had been selling off as of late and now short sellers will buy this deal. The most important thing is that STB keep sticking to their knitting and keep growing that distributable cash

[d_trump]

thanks for clarifying that its best efforts - i couldn't find that anywhere. with regard to the price - $5.40 is probably the right number.  You need a price that will be assured of selling out.  If you get too greedy and it bombs then you have a giant matzah ball hanging out there and you will do much worse than 5.40.  So I suspect this will be over-subscribed.  And if it

[bychoice]

A very sage response. Thanks for such a clear explanation TD dropped the margin value of STB from 70% to 50% THIS MORNING. I would have liked to get in on the $5.40 price, BASED ON YOUR info, but I would be far too margined, if I did.  I did buy on the issue in Feb @ $7.20, only to watch the price fall to a 52 week low, so I don't trust the market, on this one.

[indoubtgetout]

Bought some too at $7.20 - unless STB's business has changed the dividend looks safe albeit high relative to the current price. So STB management has some work to do to get new shareholders and to ensure future dividends are maintained. Bad things usually happens in bunches so once SNCF is out this hopefully this will pave the way for better times for STB holders!