Yeah, trying to get a deal done around the holidays was a moronic move for these guys.....sloppy all around. At first, they were talking the deal at 9%, then they needed to revise the covenants, sweeten the price talk, and still couldn't get it done. Amateur hour big time. This deal should have gotten done and been a drive by...just very very poor timing. With a coupon in that zip code, I would have waved it in. Most deals that price around there have LTVs close to 100%, while that deal was a little north of 60%. Very disappointing situation. I bet they come back early next yr in 3-6 months. Bloomberg headline uses the term 'postponed'....either way, think this puppy is just a matter of time. I'd add while the fast money/instant gratification crowd continues to sell....thesis is still intact, just pushed out a bit
Sentiment: Strong Buy
So if I had to guess, it all went down like this:
Chitty Banksters: We can get this done at 9.5% tops.
Ian: Great, let's do this.
Chitty Banksters: Hey friends, family and preferred clients, buy GSL. Good things are coming, trust me.
GSL: Hey world, we're doing this great debt placement!
Chitty Banksters: Hey friends, family and preferred clients, sell GSL after this nice pop.
Chitty Banksters: Sorry Ian, we were blowing smoke up your #$%$. It's going to be more like 10-11%.
Ian: Why don't you go fork yourselves.
GSL: Hey world, no debt issue because of market conditions.
Does this sound about right?
I heard some more chatter today...source said GSL could have filled interest in 10-11% range, but they didn't want to go that high. That's $4M more in interest a year to jump start the dividend. You'd think it might have been worth it if they didn't have an alternative?
We don't know the whole story. Maybe when they announced the private placement they felt pretty good about it getting done. Who knows what ensued in the meantime. I'd sure like to know!
i already posted my mea culpa. clearly my head was up my #$%$ while a few others had actual info. pretty poor performance all around. they should Never announce something they can't pull off. amateur hour.
The retail investor gets hosed again. For all we know, the whole thing, including the announcement of the private placement, was part of a pump and dump operation. Likening Wall Street to a casino is an insult to casinos. At least casinos are regulated.
Gee massive selling prior to the now public information that the offering is withdrawn. I don't know why I get sucked into these. Well actually my trading program got sucked into the volume and price spike a few days back.
If there is any bonus to this, is that the bad news is already baked into the current price, since apparently everyone knew about it except the retail investor. Still I have no intention of holding stock in a company with this much investor ill will.
Where did you get the 9.5% coupon?
If this drops below $5 then maybe it is good time to add again. It is just a matter of time that they delever and restate dividend.
no s**t. the other way to look at this is somebody (read CMA crowd) maybe pulled Ian's choke collar at last minute. the notes had a 9.5 coupon, ouch! there are many ways to skin this yet, but my earlier posts show how little i know., so i am speculating. i just know it is in CMA's best interest that GSL work out. you were correct on this one Foo.
feels like slime. i moved in on the news, now just feel slimed by the system - midday plummet and afterhours PR, either I'm reading this wrong or somebody had the benefit of a _really_ good "hunch".
If I was a GSL long, I'd be kind of #$%$ at this news. Merry xmas indeed. Sorry to hear it for those expecting a dividend reinstatement soon. Or am I interpreting the news wrong?
You mean the ones they just announced they won't be issuing? Do you think those selling today had ANY IDEA that this was coming after the close?