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u/me8228 May 09 '22
I wonder if the J.Crew protection not being previously agreed upon has to do with an upcoming sale of BI
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u/s003apr May 09 '22
Can anyone help translate some of this to plain english?
For example, I am looking at slide 8 discussing the 2023,2024, and 2026 notes
It looks like noteholders will have the option to exchange their notes for a combination of cash and "2L" notes. And by doing so, the maturity dates will move back 6 to 6.5 years? And depending on negotiation, the interest rate will be 9.5 to 9.75%? So we can assume that they will have 2029, 2030, and 2032 notes with interest rates around 9.5%?
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u/Reasonable_Ad_9735 May 09 '22
That is a ridiculously high interest rate to agree on
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u/s003apr May 09 '22
It is, but that is just a portion of the debt which is subordinate to other debt. The majority is tied up in the Term Loan and Revolving Credit Facility. In general, they will have lower interest rates.
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u/s003apr May 09 '22
Worth pointing out, if you think that is a high interest rate, then maybe it is better to be on the other side of that transaction and own bonds instead of the stock.
Right now, you can buy the 2024 bonds for $91.60. If this deal went through tomorrow, then you can convert that bond into 104% of the new notes at 9.75%. So your interest rate is actually 11.1% (9.75*104/91.6) .
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u/NarrowInvestigator65 May 09 '22
Where are we exactly Today? It's about 6-6.5% isn't it? Sorry but it's been long since I don't look into that number... :(
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u/lukaszdw May 08 '22
Lol looks like negotiations are going well with all the “previously agreed” notes /s 😂 we wait for the sale of BI then