oh ok thats answers my question. people pointing out 'oh that just boiler plate' its just down 34% in 5 days totally normal. i'm long the bonds so i take the haircut second to last so i hope they pull it off common, preferred, warrants, office furniture whatever they can sell.
so the preferred isn't an offering either. they are selling at a mkt price that pays 15% plus interest?
filing states up to $600 Million in common, preferred, and debt that is in the sec filing page 34 of pdf.
how about the offering price on their up to $600 Million in common, warrant and debt securities in the same sec filing?
they are offering to sell up to $600 Million in bonds. page 34 sec filing bonds for sale, not buying back, selling common, preferred (up to $100 million) , and bonds all you can eat.
sorry to burst your bubble but they ARE SELLING BONDS TOO. Page 34 sec filing pdf up to $600 Million in common, warrants, and BONDS!
they are generating $500 million in EBITDA annually even if they cut their distributions compare the cash flow to mkt value. at the rate of decline 1-2 years cash flow will make you whole at mkt prices soon. even with recontracting, decling oil etc.. its difficult to outline a decline to zero this is trading like an E&P headed to BK i don't see BK here. anyone got some other insight?
and? then they will have $500 million of EBIDTA with no dividend i guess they will pay off all their debt? no doubt about it
if true why are their 2020 and 2022 close to par at 98 and 96? debt market is supposedly smarter money than equity so they are saying they are ok far from bk. would expect bonds at 45-50 cents on dollar like some e&p if they were heading towards bk. they have low cost funding locked in 5-7 years if they cut their distributions that could give them more breathing room as well. at 17% plus yield no credit given for div as is.
look on the brightside they don't own any oil assets these properties are not melting ice cubes like oil reserves are nor are they subject to the extreme whims of market forces.
inflation in the form of 100% increase in the value of the commercial real estate over the last 10 years makes up for some of that. your #$%$ about 60 cents out of $100 loss in purchasing power i'll take the hit for the net gain on the value of the property everytime.
Look at what they are selling on their website, walgreens as low #$%$25% cap rate, that is close to what they pay on some of their debt and higher than some of their mortgages (10-K). They are deleveraging while the rest of their portfolio on an annual basis collects more rent, that is as close to a wash as you can get, they are not selling for a 4% loss on the spread as your example states. jibberish wow that looks like math to me they are acting prudently.
you are paying back debt with inflated dollars, inflation erodes the value of the debt they borrow more than average and benefit more than average from inflation. real assets like real estate increase in value with inflation. inflation has averaged 1.9% last 10 years. retail commercial real estate value have doubled over that time span clearly reality disagrees with you
5 million shares trade in a span of 5 minutes almost days worth someone leak a buyout or dividend announcement?