One of these weird, almost unique situations where the logical expression of the "survival" trade was/is to buy the bonds. Simply due to the massive equity infusion required to keep the company alive and the uncertainty surrounding that.
They would have reached agreement already with the banks about the level of new equity required to refinance the bank debt into longer term debts.
One possible scenario - $200m to be raised via a 5:1 at 20c, underwritten by Bright. Depending on the shortfall, Bright will be hoping to increase its stake to over 60%.
One possible scenario - $200m to be raised via a 5:1 at 20c, underwritten by Bright. Depending on the shortfall, Bright will be hoping to increase its stake to over 60%.
That would trigger a change of control event on the bonds which entitles immediate repayment. Since the bonds are probably their cheapest debt I imagine they will be thinking hard about how to delay this event.
That would trigger a change of control event on the bonds which entitles immediate repayment. Since the bonds are probably their cheapest debt I imagine they will be thinking hard about how to delay this event.
Good point.
One way would be to stretch out the CR and the resulting shareholding change until say, October. That way, there is only 2 months left for the bonds to mature.
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