Just in – conv debentures at 102.58
Refinancing is now on the table, among other options. The S&P and DBRS are now in a position where they can argue for a debt upgrade, etc. Refinance that big bad debt and buy back stock! Use Subdebt like preferreds or unsecured debt on top of some tiered debt / revolver.
And then buy back stock blast it! Retire the cheapest part of the capital structure (the equity!)
The yield on the debt is like 10% and the yield that is flowing through to the equity is way higher! Like 30%. Might as well target your buybacks accordingly while the market is ridiculous.
all debt is now trading above par. sr. secured notes are at 105 and debentures are 102.58. sr. notes get bought out at 105 on a refinancing and debentures get bought out at 110.
