i would be prepared to bet that ACL won't get a straight bank...

i would be prepared to bet that ACL won't get a straight bank loan.

even with the promise of strong cashflow down the track from Dr Reddy's relationship, it is not an investment grade credit proposition.

To the extent that Pete Smith has mentioned a debt instrument, I am highly confident that it would be a convertible bond of some kind.

Experience suggests that it will carry a coupon (maybe in the range of 7%) together with the right to convert / obligation to convert to equity in certain circumstances at a pre-determined price. The conversion price will be something like a 30% premium to recent VWAP, possibly just less than $1 a share would be my guess.

If ACL were doing a vanilla debt raising the interest rate would be closer to 14%. . . .i am guessing. . . . so you are trading off lower interest rate against the equity upside kicker.

Who invests in this sort of thing? possibly a hedge fund.