Originally Posted by
Excargodog
What part don’t you understand? Both the terms of the CARE program and the terms of any bond sale are all in the public domain.
That seems a naive comment. They are selling bonds to raise liquidity, not to buy airplanes. And the CARE restrictions are against using company assets for stock buybacks and restrictions on executive compensation over $3 million as well as for restrictions on Golden parachutes for those leaving. If in fac they are floating a bond sale for the purpose of being able to avoid those restrictions a year later, it would not convince me they believe they will be making money “hand over fist”.
YMMV.
First: They didn't release the prospectus, just the press release. Find the prospectus if you think I'm wrong.
Second: Just because you're a debbie downer doesn't mean I'm naive. They are swapping lower interest for higher interest liquidity to have less restrictions and no government ownership of the group's stock. I even quoted the treasury terms but I guess you didn't see that. You are focused on the part about how management is going to make it big and you will be broke. The picture is bigger than that.
Terms for cares: "The transaction agreement includes covenants by the Company to comply with certain restrictions on employee compensation, stock repurchases, dividends, and reductions in employment levels, as required by the CARES Act. Treasury will receive warrants to purchase common stock equal to 10% of the total loan amount drawn."