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The Coca-Cola Company Message Board

  • ejschultheis ejschultheis Aug 10, 2012 12:59 PM Flag

    EK BONDS TRADING OFF

    http://cxa.gtm.idmanagedsolutions.com/finra/bondcenter/BondDetail.aspx?ID=Mjc3NDYxQVYx&Range=3mo&GraphType=Price
    Prices are down about 5% of face from 25 to 20 this week.
    I don't know how... but the bond market always knows something prior to the stock market.

    If I were to bet , I would think the Auction is not going as well as expected early in the week. Proceeds may be north of a billion but not enough to bail out the stock holders.

    first 900mm pays off the DIP financing
    next 575mm pays off secured holders
    next 500mm other sr holders
    then 2-2.5 billion for all other creditors.

    company needs 2-300mm cash for day to day needs.

    Assets are worth something but how much?? lots of value lost in past 8 months. Bonds trading at 20 cents on the dollar suggest that they might only get 40 cents down the road. Where does that leave the stock holder?

    I would feel much better if the bonds were trading up this week.

 
KO
40.59+0.04(+0.10%)Jul 29 4:00 PMEDT