NOW FINALLY PEOPLE ARE PREPARED TO ADD THEIR COMMENTS TO THIS FORUM WHICH TILL NOW ..opps caps on.....had an absence of input ...keep it up....
as for the NEW Conv note.... Pdn had no problem selling US2374M ..a show of confidence in a world that lacks confidence..esp In europe....
11 months before the due date of the 2013 notes....dealing from a position of strength.....
I did think they would be able to get a better interest rate...but I see their position....in 6 to 11 months financing may again DRY up...and then financing rates would be at the whim of the lenders....like the the GFC... ...... look at the last Conv Note they paid out..... not one note holder converted to shares...even though the share price was lower than the note face value....
now lets see what the present 2013 note holders do....
after this we have only notes maturing 2015 at US$5.665 US$300M
and this new one maturing 30 april 2017 US$ 274 M 6%
the Bond notes for 2013 have a catch clause in the buy back..... EARLY BIRDS OFFER accept the offer and get US$200,000 for each US$ 200 ,000 note
come late and get US$198,000 for each US$200,000 note.... these have a interest rate of 5%
the NEW NOTES have a rate of 6%
so as both NOTES trade on the open market ....the 2013 notes will lose value against the the new notes that pay 1% higher till at 6% till 30/04/2017
so the older notes will trade lower on the open market....those who do not accept the offer will quickly see the value of their notes decrease......if they need to sell....and many do so in order to make extra profits.....
2013 conv Notes left over will trade at a lower value and pdn or any associates will be able to buy them back at a discount to the face value...
who sells....well instos and people who have to balance accounts early....who need cash now not later for various reasons........
whilst a somewhat deceptive move ..Pdn did this last time around......its not the first time.....
and by doing so it extends out the call date on all its conv bonds ...till the company is 100% viable and in other words ...making big profits.....
nothing has really changed ..except..PDN has REOVED THE 2013 RISK FACTOR......
NOW lets wait and see how many convert their notes to shares and how many take the cash.......
as I said last time this happened no one converted the notes to shares.....
this time round the notes have been issued at a 25% approx prem to the reference price of PDN shares at the time of issue....
remember Q4 and the journos writing up about the BIG LOSS PDN made as a result of the "IMPAIREMENT"
...when in fact the company made a PROFIT.
..after all it is a developing company.......with 2 operational plants ....which face teething problems making it to 100 % or more of name plate capacity......and are close to achieving the 100%.....+
this bond issue insulates PDN from any global financial crisis in the capital raising market...and I said in a previous post ...this was a possibility and why...but really did not think it was going to happen yet..well wrong ...they did it sooner than later......
so on Tue the market does what it always does....over reacts .....just like it did after the Q4 journo reporting... so someone out there is making a lot of money ...hitting stops....and covering shorts.....noticed at the end of the day how all of a sudden the price stopped falling and ended above the VWAP........
well its all in the asx reports in my 2 nd last post ....
as for the poster that just re -surfaced......where have you been when the price was up......not a word.......
remember show the posters some appreciation.
hit the thumbs up or down....button......and never be put off by the negative posters who don't hold stock....thats what they are paid to do...scare you off
PDN Price at posting:
$1.58 Sentiment: LT Buy Disclosure: Held
(20min delay)