Some CN's are really setup as a loan to the company.i.e. high interest rate,but with the company having the option to repay the loan early with modest penalties,rather than have the notes converted.
This would have been beneficial to MUS as it expects a healthy cash injection short term.
The CN's MUS arranged are a highly dilutionary,high penalty,low interest rate,type that gives the noteholder all options and the company almost none.
If MUS had the option to early repay at its option,I would class these notes,and the deal as neutral.
MUS Price at posting:
4.8¢ Sentiment: None Disclosure: Held
