Georgia Gulf (GGC) Closes Sale of 9% Senior Secured Notes due 2017

As I mentioned earlier they were priced to yield just about 9%.

The notes are senior secured obligations, rank senior in right of payment to all our existing and future debt that is expressly subordinated in right of payment to the notes, including our existing senior subordinated notes, and rank equally in right of payment with all our existing and future liabilities that are not so subordinated, including the ABL Revolver and our existing senior notes.

People buying the stock and gunning up the price the first few days of this week were buying the wrong part of the capital structure. Whoever bought the 7.25% of 12/15/13 (which is a senior note) today for 92.5 to yield 9.44% made the right move.