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I am not from finance, I understood it as, PFG is a partner in...

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saugatnew

54 Posts.

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05/01/21

10:52

Post #: 49947467
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Originally posted by Arcturus451: ↑

It's not clear to me what the share issue is all about, in particular the bit that says: "which if sold by PFG, the proceeds from which must pay down the outstanding tranche 2 loan principal on a dollar-for-dollar basis". I've obviously been out of finance for too long because I don't recall ever seeing this type of arrangement. It sounds like any future proceeds (including gains) on sale of the shares issued to PFG must be applied by PFG to notionally pay down BUD's debt to PFG if they are sold. But only "if" they are sold. It all sounds odd to me. Is anyone familiar with how this works?

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I am not from finance, I understood it as, PFG is a partner in BUD by providing loan facility. BUD offered the securities in exchange to the loan offered by PFG. if PFG sells the securities it holds in BUD then it ceases to be a partner and the gain coming from the sales of those securities should pay the principal amount of the loan. if PFG does not sell them, then it continues to be loan partner. please anyone from finance background, suggest me if my understanding is incorrect

BUD Price at posting: 5.2¢ Sentiment: Buy Disclosure: Held
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