We can also take into consideration that the lender must have felt at the time that NRF was worth at least $6.44/share and most likely higher for them to agree on that valuation.
The fact that it's unsecured is another good point about this loan.
And the fact that NRF was able to raise the funds so quickly is also good to see.
The fact that the loan is only 7.5% is good too.
Also if the lender thought there were any issues with NRF there is no way they would have given them a 20 year term. Especially with how strict lenders have been in the past two years.
With the fact that the only possiblility of dilution is if NRF themselves decide if they wish to convert to share. This is a clause I can guarantee you that management in most companies would have loved to have in thier loans over the past two years.
To me its more of a safe guard for NRF then for lender.
Also all the shares are being sold to financial institutions, so i'm guess that who ever buys NRF is already holding NRF in thier portfolio.
Also the downfall could have been a hedge being put in place in the open market. Which mean it's in place and hopefully we should see NRF return above $6 shortly.
Analysts have already set NRF's new target to $6.67 which is very close to $6.44 set by the lender.