Yes. I finally have an answer to what they can do: put the $40m in an escrow account with some fixed interest rate product (rates are higher now than 2022 when they took the loan) and just pay it back from the escrow fund over time. But yeah, over the span of the lease cert, they will still pay something like $58m
Yes. I finally have an answer to what they can do: put the $40m in an escrow account with some fixed interest rate product (rates are higher now than 2022 when they took the loan) and just pay it back from the escrow fund over time. But yeah, over the span of the lease cert, they will still pay something like $58m
I've said this before and I'll say it again - the language in the resolution the board passed does not match the language in the lease certificate. The language in the resolution says they can redeem it all back at any time and just pay interest up until the present. The certificate says they have to wait 10 years to do that kind of redemption. This seems like a big issue to me!
I think that’s unnecessary. You just do a tender offer on the bonds - the bond or lease cert holders (same thing). The prices of the bond payoff all-in is a function of rates and time to maturity. Given rates have gone up, that works in the favor of the prepayment cost.
Yes. I finally have an answer to what they can do: put the $40m in an escrow account with some fixed interest rate product (rates are higher now than 2022 when they took the loan) and just pay it back from the escrow fund over time. But yeah, over the span of the lease cert, they will still pay something like $58m
I've said this before and I'll say it again - the language in the resolution the board passed does not match the language in the lease certificate. The language in the resolution says they can redeem it all back at any time and just pay interest up until the present. The certificate says they have to wait 10 years to do that kind of redemption. This seems like a big issue to me!
I think that’s unnecessary. You just do a tender offer on the bonds - the bond or lease cert holders (same thing). The prices of the bond payoff all-in is a function of rates and time to maturity. Given rates have gone up, that works in the favor of the prepayment cost.
You typically don’t have full participation in a tender offer but you can do it in tranches over time.