7 points | by ericlmtn 11 hours ago
4 comments
"Guarantee" is not an appropriate word here. In fact, such a high rate indicates that it's a very risky investment ("junk bonds" pay ~7.5%).
article does say a 17.5% minimum, which makes me wonder
I'm guessing these are convertible so the lenders can take either 17.5% interest or convert to stock, whichever is worth more.
Are private equity firms really buying this? Especially with all the cash flow issues going around?
"Guarantee" is not an appropriate word here. In fact, such a high rate indicates that it's a very risky investment ("junk bonds" pay ~7.5%).
article does say a 17.5% minimum, which makes me wonder
I'm guessing these are convertible so the lenders can take either 17.5% interest or convert to stock, whichever is worth more.
Are private equity firms really buying this? Especially with all the cash flow issues going around?