Maybe they have no choice. I assume some institutions are selling this poorly performed stock for the year-end window dressing which may contribute to the slide to certain degree. If this is the case, would it be better to offer the notes until the price recovers the part from the year-end window dressing.
These notes probably will be marketed to institutions and sold out at the opening. No doubt the convertable sweetener will put a lid on the stock at some level but there should be plenty of room for a good bounce after the banks balance sheet is shored up. WW
I cannot help applauding the management for terminating the convertible notes. The latest balance sheet shows SWS has more than half a billion of cash and cash equivalents. If they can hold for a little while and work diligently, I believe they can find deals more favorable for us shareholders.
They have no choice. The bank needs the cvapital immediately or it will be shut down by the feds. This is not about share price. This is there last desperate shot at raising the capital they need to save the bank.
I was thinking that lower share price would make the dilution effect of the convertible notes worse. Does this make any sense? I only skimmed through the CC transcripts. I do not remember they mentioned imminent threat from the the Feds.