If PVA was doing this financing so they would have the cash to call in the high-interest bonds it would make this deal more palatable. However, according to the news release of 10/9 they are raising this money to pay down the revolver and for general corporate purposes.
I think if they were getting set up to call the bonds they would say it because that would go down better in the minds of common shareholders.
I was led to believe that the PVA liquidity situation was much improved and that the drilling program was almost completely funded through the end of 2013.
Maybe longer term this will work out but I do not like the conv. pref being part of the deal. They are a toxic form of financing for the common shareholders and it has been proven again and again.