Thread: This is good news.....right?
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Old 24-02-2011, 11:22   #4
weesteev
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Re: This is good news.....right?
Quote:
Originally Posted by Jonnymeg View Post
Yes, i think so.
I think it means that they issue bonds and pay interest on those bonds to the purchaser over the ten year period.
The money the rake in from these bonds will go to pay off bank loans that have greater rates and covenants attached to them.
So whilst they are still in debt they are reducing their interest payments and giving them greater flexibility.

Correct me pls if i am wrong.
You are totally correct. This is great news, but not unexpected especially after the Q4 results recently.
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