After the placement is closed, I would not be surprised to see another offering of unsecured debt for growth purposes. Ian has said all along that the intention was the both 1.) reinstate the dividend and, 2.) grow. This placement accomplishes #1...I'd expect further news to get at #2.
I haven't followed them since the recap, but if it is as you describe, doesn't sound like that great of a deal...unless they had identified some tangible costs that they could strip out that Scott Petersen was dragging his feet on, or maybe they had a good sense from hotel partners what their upgrade plans were...I mean, maybe they did a big HD upgrade push that LNET couldn't do prior due to under capitalization? I have no idea. That one was a lesson for me -- a company always has less liquidity than you think, due to contracted restricted cash. At one point, it was a 10-bagger for me (original basis was $0.70 during the melt-down, but I got greedy and didn't sell....another lesson learned).
Haven't been on this board in a looong time. Thanks mojo. Also recall that Ian said "high teens, unlevered". Frankly, I'm fine either way, but as sfi_watcher points out, Finance 101. Anyone else see a bunch of unlevered high-teen return opportunities? If so, then you should beg for a dividend too.