I told you those little weasel investment bankers were working long hours this weekend to price deals.
PDCE is one of the few companies who smartly hedged most of their production before the collapse. As such, the pricing of this deal was nothing short of a dunk shot. Even so, and especially after today’s rally in energy stocks, I’d be shocked if the market was not flooded with spate of offerings this week.
If you run an energy company with lots of debt and do not price a secondary this week, you should be fired.
Via Briefing.com as per PDCE’s statement:
If you enjoy the content at iBankCoin, please follow us on TwitterThe net proceeds from this offering will be used to repay the principal amounts owed upon the maturity of the Company’s 3.25% convertible senior notes due in May 2016 and for general corporate purposes, which may include repaying amounts borrowed under the Company’s revolving credit facility.
there are two types of secondaries… those who raise equity to stave off BK and those who are smelling blood in the water…these guys are the latter…..
RRX.to did a raise …they don’t need the cash but are looking to acquire assets at fire sale prices……
MRO raised $1B a week ago when the stock was trading $8ish…now MRO is $11. Oil has also gushed during that time, so trying to figure out if the money they raised alone would have still propelled MRO up or if it was due to the combined efforts? Do you see the monies being raised putting in a floor per say on stock prices (energy) and for those stock prices to bounce if they so announce secondaries? I can’t recall too many co’s I follow who have issued secondaries and have exploded like MRO did afterwards.
First Article that I saw that agrees with my analysis on ore http://www.businessinsider.com/heres-whats-going-on-with-iron-ore-and-why-the-price-is-expected-to-crash-eventually-2016-3
Eventually might be a long time from now. Eventually we’re all dead.
hi Trading Nymph… you like to research things… I want you to research the day April 4 2000…. that day is etched in my mind forever…. for about 2 hours the trading floor stood in disbelief..the phones stopped ringing….we eclipsed black Monday that day… the drop in 2008 didn’t have anything like that on a daily basis.
Anjing will do. Frog, Well they need only about 195M tons of Iron Ore.