Ok, I know you get a bit excited, so I'll lay it out for you.
1. There are no bonds trading at 102.
2. The bond prices are set by the market, if they trade below 100 it indicates investors want a higher yield for the probability of default. It doesn't necessarily indicate stress, it indicates the percpetion of stress by that market. They can trade irrationally just like the stock market (Fear and Greed).
3. Yes they aren't due until 2027, but no CFO is going to wait until 2027 to refinance them. Most CFO's will refinance a 5 or 7 year instrument 2 years out from maturity. Why? Because no CFO wants to be put in a position where they are forced to raise money when they don't want to. If you want to plan for the next 5 or 7 years for your business, it doesn't make sense to have bonds which are due in 2 years. You just don't know what will happen to the credit market over that period. MIN (Mark) will absoolutely be looking to refinance now. If you use a floating instrument you don't have to worry about the timing of rate cute or rises.
4. High yields is not a good thing for the lender (MIN are the lender). These yields aren't that high. It's the going rate in the high yield market. Consider MIN should be able to use this money to make a 20 - 25% ROIC.
MIN Price at posting:
$26.79 Sentiment: None Disclosure: Held
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