Author Topic: FRFHF - no bump because of tax reform?  (Read 4046 times)

petec

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Re: FRFHF - no bump because of tax reform?
« Reply #10 on: January 04, 2018, 12:38:52 AM »
I was thinking more stuff like this...

Seaspan Announces Letter Of Intent For Potential $250 Million Unsecured 5.50% Debenture And Warrant Investment From Fairfax Financial Holdings Limited

http://www.seaspancorp.com/press-release-post/seaspan-announces-letter-of-intent-for-potential-250-million-unsecured-5-50-debenture-and-warrant-investment-from-fairfax-financial-holdings-limited/

This is THE David Sokol btw

I love these deals - the deb+warrant structure seems much nicer to me than a convertible bond. A $250m debenture plus warrants to buy $250m of shares at $6.50...with the share price at $7.05 today that is an instant gain of $21m, which you could think of as an additional 8.5% in interest on the debenture, compensating you for the fact it's a relatively low grade bond at a below market rate. Downside largely protected unless Seaspan gets into real trouble, plus a fat equity kicker.

In the last letter, Prem mentioned investing in the craft spirit brands company Davos Brands "in partnership with our good friend David Sokol".
« Last Edit: January 04, 2018, 12:45:15 AM by petec »