Yeh don't be offended, They borrow $50m or basically a overdraft, give $14.2m back on puts that are well out of the money. My bet, the banks are the biggest scumbags they would have given a $50m loan 1% under commercial terms with puts as assurance to downside and guess who has under written it, you guess correct the banks.
Banks loan $50m minus $14.2m with a 9% on $50m rate. Year 1 $4.5m interest fully drawn plus $14.2m. 40% return and zero risk.
OBM Price at posting:
97.5¢ Sentiment: None Disclosure: Held
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