Scotty71
Scotty71
Joined: Mar 5, 2011
  • Threads: 19
  • Posts: 289
October 17th, 2012 at 11:06:42 AM permalink
The bondholders... This Co has about 9BB in debt or so. I believe most of that debt was a result of Macau building which I think they eventually issued equity in Hong Kong.
Anyway the bond were more or less kept out of the public domain and probably went straight to Credit Hedge funds and mutual funds. I think the convertibles paid around 6.5% but they could have been priced at a discount so hard to say how much was really made by them.
I didn't own it then or now but if any of the bonds converted to equity that would absolutely be a drag on existing shareholders as the company swapped equity to get rid of debt...an expensive move if you have to get sell equity when your ROE is 17% when your return on assets is 7.2%... but during the credit crunch a lot of co's made that painful decision
when man determined to destroy himself he picked the was of shall and finding only why smashed it into because." E.E. Cummings
NokTang
NokTang
Joined: Aug 15, 2011
  • Threads: 56
  • Posts: 1314
November 21st, 2012 at 2:13:22 AM permalink
One of the "Hedge" fund managers was on Bloomberg last night. He was promoting the break up of Sands with claims among others that "Macau was just getting started" and was like Las Vegas when it began. Utter nonsense if you follow it at all. The place is running out of land so they say and permits are not being issued so easily. Credit is again key to many gaming entities there. I mean players getting credit or coming on junkets with someone behind the scene putting up the money. Careful, be careful, is all I'm saying.

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