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Subject:  Patriot Coal Bonds - recovery rating 3 Date:  7/5/2012  1:16 PM
Author:  altstrat91 Number:  34242 of 36324

so this is interesting.

cusip 70336TAC8
redemtpion 4/30/2018
coupon 8.25
annual yield 30%+

according to a recent analysis by S&P, these bonds have a recovery rating of 3. the bonds are currently trading potentially below this range. often with commodities related companies, their analysis can be on the more conservative side.

these bonds tanked straight down from $85 to upper $38 and now while the stock price has surged nearly 300% on an obvious squeeze, the bonds are firming a tad at $42.

i have not come across an opportunity like this where the recovery rating analysis was above what the bonds are trading for in the open market. do your own DD and just wanted to pass this case along.
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