Co announced that it has signed an agreement with the Smedvig Family Office of Norway for a current investment of $40 mln (USD) and with the intent to increase that investment to a total of $100 mln (USD) in the future to support the strategic activities of END. This investment will take the form of a convertible note and is expected to close in mid-January upon completion of required consents and approvals... The convertible notes, due January 2014, have an initial conversion price of $2.36, a 74% premium to the closing price of END common stock on December 24, 2007.
At first glance, I agree. Ex-Bain Capital boys, normally shrewd in their strategies.
I'm curious as to their end Game, but that should flesh out w/i next several months. Specifics of how the Note is crafted should shed some light.
Gut expectation is the END old Guard (ops management & BOD) will take a few more hits (Good!)...accountability to achievement within guidance will increase markedly (Good!)...Transier will sacrifice further autonomy (Good!).
Should move on the LSE tomorrow (post-Boxing Day). I expect added analyst coverage within the month (Good!).
This Issue may make some money for Longs after all. Good stuff!