I hate to reply because I am not sure. A quick read is that the bonds were bought sometime ago at roughly 50% discount. NRF owned $71 mil. The redemption at par will pay for all bonds. I am sure DAR will give us his take.
Of course I will, after I bought another flip lot.
First, the core business gets 71 million of cash which can be reinvested elsewhere. Next, the core business realizes a 35 million gain because they paid 36 million to buy 71 million of bonds. This gain will NOT be recognized in the consolidated financials since it gets eliminated in consolidation. However, the consolidated financials don't pay the dividends, the core business does.
I don't know how much, if any, of this 35 million realized discount (gain) was included in the Feb estimate of core cash to common. Maybe they contemplated this transaction in whole, in part or not at all in the Feb estimate. Just don't know. I do know, however, that the WORST case is contemplation in whole in Feb, therefore no increase therefrom in the May estimate. In short, no downside with plenty of upside.
35/208 = 16.8 cents per common share, whether included in Feb or not.
Like a broken record, ya gotta read the tea leaves before it's spoon fed to the lazy market. All the tea leaves released since the Feb CC have pointed positively to more growth in core cash to common than estimated in Feb. All of them, without exception. When the stock price exceeds 10.50 in May (if it does), don't say I didn't tell you weeks in advance.