I hold JEF 8.5% 7/15/2019 bonds. These are not callable. Does anyone know what will happen to these bonds as a result of the proposed merger? Is it just business as usual until 2019 or will they somehow get called as a result of the approved merger? It appears that JEF will continue operations as is after the merger so I assume that nothing actually happens with these bonds, but I'd like to be certain. Can anyone help?
I own the 5.5% of 3/15/16. There is a "make whole call" provision which allows the company to call in my bonds at a price that compensates the owner for future lost interest. Check whether your bonds are "non-callable" (company can make a tender offer that you can refuse) or "make whole". Refinancing bonds may be one of the "synergies" LUK & JEF will work to lower costs after the deal completes.