Q: Why is so bad for the private offering? They will pay down the debentures which will mature in three weeks, and the new ones will mature in 2029.
Thank you!
Thank you!
5i Research Answer:
Investors are frustrated because the new debentures have a higher interest rate than the old. This will of course impact margins, but with the spike in interest rates it is not surprising. But the deal also highlights the fact BB has had highly negative cash flow (negative $263M in the last fiscal year and only $2M in the last 12 months trailing).