This blog is mainly about the spectacular train wreck at The Sacramento Bee and its parent company, the McClatchy Company. But I also post about current events, the Iraq and Afghanistan wars, politics, anything else that grabs my attention. Take a look around this blog, hope you enjoy it.
Wednesday, May 27, 2009
Investors think McClatchy can swap unsecured notes for 33% and 28% of par value
Wallstreet Journal says... Newspaper publisher McClatchy Co. is asking holders of $1.15 billion in debt to give up 80% of what they are owed, joining a growing list of companies seeking to lower their borrowings by exchanging existing obligations.
Under the offering, bondholders will get anywhere from 18 to 33 cents on the dollar, depending on what issues they hold and how quickly they agree to the swap. Those who sign on will get cash and new bonds that pay significantly higher interest rates ...
A lot depends on how many bonds are protected by credit default swaps. If the bond holders have CDS protection, then they will prefer default and bankruptcy.
3 comments:
Wallstreet Journal says...
Newspaper publisher McClatchy Co. is asking holders of $1.15 billion in debt to give up 80% of what they are owed, joining a growing list of companies seeking to lower their borrowings by exchanging existing obligations.
Under the offering, bondholders will get anywhere from 18 to 33 cents on the dollar, depending on what issues they hold and how quickly they agree to the swap. Those who sign on will get cash and new bonds that pay significantly higher interest rates ...
What's with all of the ads on the left hand side?
A lot depends on how many bonds are protected by credit default swaps. If the bond holders have CDS protection, then they will prefer default and bankruptcy.
Walt-in-Durham
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