The Motley Fool Discussion Boards
Investing/Strategies / Bonds & Fixed Income Investments
|Subject: Re: Any updates on Edison Mission Energy bonds?||Date: 11/6/2013 12:38 AM|
|Author: howardgt||Number: 35089 of 35576|
If the $3.7B Howard mentions in his post is the correct amount of debt (and not debt net of cash), it could be that we're getting full face value.
I got the $3.7B debt from the RTT news report… I didn’t check out the real numbers until you got me excited:) about the possibility of receiving a full face value recovery.
Well I started digging, and it turns out that the $3.7B is ONLY the unsecured recourse debt. There is additional debt of $1.393B outstanding (probably mostly the non-recourse stuff).
I’m guessing there are other minor assets to account for, and it all works out close to the 73 that the unsecured bonds are currently trading at.
I sold my small lot at Etrade for 72.6 and I’m holding my larger Fido position for the mandatory conversion. Should be interesting to see what I get. Like you, my cost basis is in the low 70’s and I received a few interest coupons, so not too bad for a defaulted bond.