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Strategies & Market Trends : Floorless Preferred Stock/Debenture
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To: BDR who wrote (1327)11/3/2001 1:40:22 AM
From: Larry Brubaker  Read Replies (1) of 1438
 
By definition, a floorless is a deal in which there is no floor on the purchase price. I see no mention of a floor, therefore, it is most likely floorless. Since this is structured as an equity line of credit (i.e., the financing is placed in increments rather than all at once), it appears to be what Zeev would refer to as a "leaky floorless." Not quite as bad as a pure floorless in that the company decides when the placements are made (presumably they will try to time the placements for when the stock is trading at a relatively high price), but it is still junk equity.
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