Post by
SPCEO1 on Jul 13, 2022 7:46am
Financing - ideal
My initial reaction is this is perfect. The opposite of the ONO and indicative of confidence in the future of TH. I will have a closer look later.
Comment by
palinc2000 on Jul 13, 2022 8:08am
Need to see the fine prints tee time in 5 minutes will look thid afternoon
Comment by
SPCEO1 on Jul 13, 2022 8:25am
If nothing else, it removes the overhang of another ONO from the stock. But will anyone even notice at this point? The stock should jump a lot on this deal because of the removed dilution overhang, the immediate benefit to cash flow over the next 2 years (maybe three years) and the backing of a major healthcare lender of TH's plans for the future.
Comment by
Wino115 on Jul 13, 2022 8:49am
Dies anyone know the current price of the convertible (as of yesterday)?
Comment by
realitycheck4u on Jul 13, 2022 9:16am
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Comment by
Wino115 on Jul 13, 2022 9:53am
Then roughly buying $30mil principal will only cost around $24mil. Very smart use of proceeds. So there goes well over half the debt, half the interest for only $24 mil.
Comment by
SPCEO1 on Jul 13, 2022 10:20am
I am pretty sure they will be paying more than $75.50 for the converts they buy but your point still stands.
Comment by
palinc2000 on Jul 13, 2022 12:41pm
I dont understand your comment...The transfer of ownership from one group to another has no impact on THTX Marathon "s financing makes the Convert much less risky of Default and Marathon will make a profit of 6 million but THTX still need to repay that 30 million Does Marathon expect the SP to be over the Convert Price and participate in the equity?
Comment by
palinc2000 on Jul 13, 2022 12:44pm
OUPS MY BAD ...I thought Marathon was buying the Convert Smart move indeed SORRY SORRY SORRY
Comment by
palinc2000 on Jul 13, 2022 12:47pm
However the price paid is not 75.50 ...It is probably around 95 $...
Comment by
SPCEO1 on Jul 13, 2022 12:50pm
I would like to think the price paid for the repurchased converts is not quite that high but you may be closer to the mark. Since the sellers now know the converts will be redeemed at par, they don't have much incentive to offer a big discount.
Comment by
SPCEO1 on Jul 13, 2022 1:38pm
According to Bloomberg, which may not be accurate with regard to current bond prices, the convert is bid at $75.50 and asked at $85. You would think the ask price would be higher given the certainty of receiving $100 per bond next June. It appears it is not only the stock that ignores big news but the convert also.
Comment by
palinc2000 on Jul 13, 2022 2:07pm
We dont lnow who the seller(s) were but as you point point out the default risk is probably cliose to nil so I dont think an informed seller would sell much at a discount greater than the time value of money or close to it I dont think uou would pick up any large number of Convert at 85$ ...if you could that would be a very good return
Comment by
palinc2000 on Jul 14, 2022 5:54pm
I just listened to the written question part of the CC and Dubuc mentioned that the 5%discount was about right...I was not the one who asked ......Not major but ,,,,
Comment by
LouisW on Jul 13, 2022 8:50am
I am curious about what milestones might be. I guess that related to Th1902 or maybe NASH. Will TH disclose the infomation?
Comment by
Wino115 on Jul 13, 2022 8:54am
Probably Th 1902 trial and commercialization but definitely revenue and cash generation targets. Lenders just want to be paid. Also, it is senior secured, meaning there is something the lender will have ownership over if unpaid --perhaps EGIFTA rights or something like that.
Comment by
SPCEO1 on Jul 13, 2022 9:42am
It makes sense that it is secured by rights to Egrifta. Which means Marathon looked closely at the chances for those revenues to evaporate from generic competition and clearly concluded that is not likely. Also good news.
Comment by
realitycheck4u on Jul 13, 2022 8:58am
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Comment by
qwerty22 on Jul 13, 2022 9:42am
NASH not mentioned as a priority.
Comment by
Greenviolino on Jul 13, 2022 9:10am
Huge. This will take care of the convertible deb repayment. An additional vote of confidence from an institutional investor. Due diligence involved vets the oncology program. Breathing room for TH management to execute their plan.