Yea. Picked up 1,500 more at $5 for a cool 10,000. It's not for the faint of heart but frankly all they have to do is announce that the divy's back and will jump to $10 overnight and the common will jump to $5-$6 in sympathy. They can they dilute a bit 10-20 mill units for cushion
At the same time it's hard not to get excited. Picked up these bonds under 12 cents and trading at 50. And those EROC bonds are selling for 35 with a 30 bid. Picked up a bunch at 16.75. That's quite a return for a couple of weeks.
Don't think that many here had it in 2015 and also don't think that ant debt exchanges took place then. I think that the period in question was Feb 2016
That's kinda what I'm doing. Sold some BTU bonds for 14 cents too. That was a great deal at 2.5 cents but don't feel like waiting a year while they restructure
That's now how it works. Based on what I've seen so far there are 2 options not including Chapter 7. You can go for a prepackaged BK where typically the bank is made whole. Second lien and unsecured may get a little cut but more likely get converted to shares in the new company and the common may also get shares but essentially very little, just an incentive for them to vote for the deal. The second option is Ch 11, but they have to go to court for both There will be no private deal with a buyer
nonsense...the banks don't own the company at least until they default. The offer is made to the shareholders and it's not likely that they'll accept anything below the current price. If shareholders get anything, the unsecured, 2nd lien and preferred get paid in full
That is correct. I made out like a bandit. Bought a boat load of MCEP at 75 cents. Sold at 3.6. NGL at 8 and change sold near 15. LGCY bonds at 11 cents and the stock around $1.30 and calls at 20 cents. LGCY preferred at $1.275 (about a penny off the bottom. Sold a third of LGCYO and LGCY bout 20 cents from the top and bought back when it hit 2.10 and $5 respectively. I regret not selling all at the top as it cost me about $75k on this last dip but it's all profit. This thing has the potential to go through the roof. He's been selflessly sharing his work and he's made a lot of people here money. I would have never thought of buying bonds if it weren't for him and frankly I can almost retire with whatever interest income I'm getting off the bonds right now..and this is in just 3 months. Now you've picked up the one MLP that has the best chance to make it to short? If I were you I would have trouble sleeping.
I would explain it but you wouldn't understand. He's made me a few hundred k in NGL, MCEP and LGCY in a couple of months and kept me away from ARP, LINE and BBEP. I could care less of how many times he's changed his avatar. His numbers are solid. You're here trying to day trade this. Most of us are looking a couple of years out.
Let me correct myself. The common gets diluted by 3.9%. They'll just issue shares and those shares won't hit the market unless the person who exchanged the bonds decides to sell. The effect is already reflected in the stock price. I look at it as a slight benefit as I own common, bonds, preferred and calls. Based on the market cap of the common the cancellation of the bonds is about an 8% benefit vs. 3.9 dilution and save $1.2 million in interest per year.
There is no dilution. Some investor is exchanging bonds for common. The other interested party "nomoredns" is the equivalent of a message board hemorrhoid, Every once in a while he becomes uncomfortable. When the stock goes up he's nowhere to be found. When it drops, he comes out and states that he shorted more and, as he's the greatest trader that I've ever encountered, that new short was placed about a penny below the high of the day. His trades are always in the hundreds of thousands and he hasn't covered because he's waiting for bk. We're so lucky to have him around to tell us how stupid we are to be long.
Because eroc bond payment is on 6/1 and the VNR on 9/1. The next eroc is 12/1 but that's only a $2 million and change payment. So they're drawing a line in the sand at the next VNR payment of over $20 mil on 4/1, essentially kicking the can and giving them more of a chance to catch up or make another amendment for a few months
No tax implications on preferred outside of the phantom dividend income. On common depends on individual circumstances. They said that it would be minimal and that they would stop doing buybacks as bonds at 35c/dollar are not as enticing as they were at 11c/dollar. At the same time it looks as if they're exchanging some bonds for common today saving $1.2 million in annual interest vs. some dilution
Cube...do you own any bonds? Trying to figure out how many cents on the dollar they'll be worth. The value of the new equity is $1.2-$1.3 billion? Unsecured gets 15% of that. So about $180 mil goes to unsecured?