As at Jun09 MXQ had $652m in debt. There are 2 class of debt one incurs a higher coupon and deferred margin of 6% and the other a lower coupon and deferred margin of 2%.
As at Jun09: Expensive debt: $166m Cheaper debt: $ $486m
As at Dec09 MXQ had $509m in debt. So I assume they paid down around $143m.
Why did they not pay down the more expensive debt first? They only paid down $36m of the expensive debt.
Do they have to pay down the debt equally?
MXQ Price at posting:
3.4¢ Sentiment: None Disclosure: Not Held