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Guys, this is capital markets 101. SFL and JF are no dummies and they are astute observers of the capital markets. They know that the junk bond market has gotten stupid and so has the convertible market. Since they are very good at choosing their spots on when to raise funds as markets are behaving badly, they went out with a bond issue. The convert structure that includes a major holder loaning shares to short is common and all DB did was take the borrowed shares and short on behalf of the buyers of the bonds, who are generally hedge funds and other arbitrageurs. Since there is too much money chasing bonds these days, the slavering dogs who are buying put in so many excess orders over the $250MM asked for that the company chose to grab another $100MM very inexpensively while they are at it.

This stuff is done all day by the investment bankers, junk/convert issuers and the idiot buyers of such bonds. Makes it a little harder to really know what this means for the company in the immediate future. Could just be a refinancing while the markets are overly aggressive.
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