Most companies benefiting from the surge in their stock prices should consider taking similar steps, especially if they face near-term debt maturities or have liquidity challenges, said Lloyd Sprung, head of debt advisory and restructuring at UBS Investment Bank.
“They can use the cash to pay down debt, selectively fund open-market debt repurchases, tenders or targeted exchange offers,” he said.via the bond market, and resorted to equity offerings and convertible notes to raise billions of dollars of additional liquidity.AMC, for its part, earlier this month secured a 400-million pound loan tied to its Odeon Cinemas unit that pays a rate of 10.75% in the first year before climbing to 11.25%.
After rallying the last four days, American Airlines’ 5% unsecured notes due June 2022 now yield less than 1,000 basis points more than similar-maturity Treasuries for the first time since March 2020. AMC’s benchmark 12% bonds due 2026, meanwhile, have climbed from about 22 cents on the dollar at year-end to 74 cents Friday, though they still yield more than 18%.
Traders are now keeping their eyes on other Reddit picks — such as GameStop Corp., Express Inc., Bed Bath & Beyond Inc., and Naked Brand Group Ltd. — for potential stock sales after shares further extended run-ups Friday. “It’s just so fortuitous,” First Trust’s Housey said. “While the trades may have hurt the shorts, in many [ways] they helped the creditors.”
As exxon and ford stocks crash thanks to LittleHitler
Your article on SNL was as pathetic as SNL. There's plenty of political figures to have fun with & like LAT just too bias to poke fun of Democrats. YOU CAN'T BLAME TRUMP FOR SNL SUCKING! Hate isnt funny & it never will be.
Not mentioned is the building anger that the shareholder class has taken our wealth while producing literally nothing. This was a way to strike back, and it won't be the last.