I assume would be merged into the new, new CCA
and the dividend would remain the same. This is not a
bankruptcy situation where the new investors can reschedule
the dividend, they must honor the dividend of
course...unless they want to call it which is highly doubtful as
the yield from the call price I believe is 8% from
The down side I feel is the new preferred most likely
will be senior to the existing preferred. $350mm more
at 12% out of cash flow isn't exactly
This is a overly highly dilutive deal and greatly
favors Blackstone, IMO. They absolutely gave away the
store for $350mm. If I had the money I'd do their deal
in a second.
I think it should of been a
rights deal right from the beginning with a Blackstone
of sorts as a standby. This $75mm portion is a
accommodation to an overall screwing.
screwing...part II Next
and you're right...tried to remember off the top
of my head and was confused with something else I
sold..I sold for 12 in July....however that is still
better than 5 1/4...and even at 12 I was glad to be off
the spiral before it went any lower. DOC would
certainly be the last person I would ever want to do
business with again!
they're smart to hold off on the conference call
until january when everyone is finished selling for tax
purposes, de-reiting, stopping the dividend,then when then
the details are explained,the stock gains momemtum
and doesn't have to fight the stock being dumped for
the wrong reasons...then as a previous post
mentioned, the 4 million shares shorted drive the stock back
to the teens...
If you sold off at 19 early last summer, I'd like to know who you sold to -- Doc maybe? The CC was in May, and the stock was under 15 before the end of the month. Summer doesn't begin until June.
While I respect your opinions always, I do not
believe that PZN qualifies as a good buy at this level.
Why? I think about 40 cents(assumed dilution) is the
max they can earn in 2000.With all the uncertainties
that remain, I expect PZN to fall to a P/E of 10 or
These convertibles can be the kiss of death. There was a good discussion of these convertibles in the OE board some weeks ago and how they work to destroy a company. I hope that is not the case here.
Joe, the framework for this deal was done in late
November. Why wait to announce til now you ask? Remember,
Doc doesn't care about the price as he's only
concerned with his consulting package. A lower price is
better for Blackstone obviously so they'd push for
delaying the announcement.
What else did the
party's gain by delaying until the last week of the year?
Well, does nobody else find it suspicious that
throughout the decline from 22 to 9 there were no
significant short sellers but strangly in November someone
sees a great opportunity to ride it down from $9. I
wonder if anyone was tipped off? Also, by pushing the
process so late in the year, it forces people to strongly
consider taking the tax loss sale option. I did. What does
that do for Blackstone? Turns the shareholder base
over. What does that do? Well, who's more likely to
vote for this merger, RP or TNBanker? RP can't buy in
for 30 days and today's new shareholders have a cost
basis of $5.
This whole deal makes CRRR's look