|Shares Out. (in M):||520||P/E||0.0x||0.0x|
|Market Cap (in $M):||31||P/FCF||0.0x||0.0x|
|Net Debt (in $M):||0||EBIT||0||0|
“Each Series 1 Share may be so exchanged will be determined by dividing the then applicable Redemption Price per Series 1 Share, together with all accrued and unpaid dividends up to but excluding the date fixed for exchange, by the greater of (i) $2.00 and (ii) 95% of the weighted average trading price of the Units or New Tradable Securities”
“On and after December 31, 2012, upon at least 30 days notice, a holder of Series 1 Shares may require YPG Holdings to redeem such Series 1 Shares for a cash price of $25.00 per Series 1 Share, together with any accrued and unpaid dividends to but excluding the date fixed for redemption.”
Source: Preferred prospectus
“27. What do holders of existing preferred shares receive?
Each holder of 100 existing preferred shares, other than Series 7 preferred shares, will receive 6.25 New Common Shares and 3.57143 Warrants that are exchangeable into New Common Shares.”
“29. What do holders of existing common shares receive?
Each holder of 100 existing common shares will receive 0.5 New Common Shares and 0.28571 Warrants that are exchangeable into New Common Shares.”
Source: Recap Q&A
Accrued dividends will not be paid under the recap proposal. The exchange ratio is simply 12.5 existing common shares for 1 preferred share. The opportunity is to buy the preferred at $0.54 or $0.59 and short the common at $0.06*12.5 and keep the spread.
|Subject||RE: YLO CN Fun|
|Entry||10/10/2012 03:32 PM|
This trade is not liquid enough for institutional size.
1. Yes, I am still able to borrow the common.
2. Yes, the preferred has gotten very illiquid now. Again, you can't put in 7 figure dollar into the trade. I have been accumlating my position for over a month.
3. I don't think the CBCA will affect this trade at all. First, the plan is approved. It's only on appeal and it's my understanding that the convert debt holders have a pretty weak argument. Second, if the restructuring drags on, YLO will force conversion on the series A anyways due to the put option.