Friday, July 18, 2014

Walter Energy's Distressed Exchange

They already did do one distressed exchange:

"On April 23, 2014, the Company agreed to issue an aggregate of 3,150,000 shares of its common stock, par value $0.01 per share, in exchange for $35.0 million aggregate principal of its 9.875% Senior Notes due 2020 held by a noteholder."
The stock was at 7.65, so that was $24.1 million in consideration - 69 cents for the notes.

I think they need to do more. Looks like the company's annual interest expense is now $260 million.

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