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|Subject: Re: Any updates on Edison Mission Energy bonds?||Date: 11/6/2013 12:38 AM|
|Author: howardgt||Number: 35089 of 35506|
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.
1. Debt balances as of 12/20/12 and exclude letters of credit and working capital facilities; Letter of credit facilities of various project financings amounted to approx. $164.0 million
2. All amounts illustrated based on contractual spread as of 12/20/12, however, term loans are subject to traditional rate step ups. In addition, many floating rate notes are also subject to swap agreements locking in LIBOR rates
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