Saturday, December 5, 2009

More on YRCW and REG

Regency Centers sold 8 million shares at $30.75 and immediately jumps to over $33. Too exuberant.

On the YRCW exchange offer: it looks like (assuming 100% bondholder participation) the current equity gets 5% of new equity, and then the union gets cut in for 20% of the new equity after that, and then management gets cut in for 5%. So current equity = 0.95*0.8*0.05 = 3.8% of new equity. Current equity valuation is $71 million which implies the post restructuring equity would be worth $1.86 billion. That is more than the entire enterprise value today.

No comments: