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Strategies & Market Trends : Turnarund Investing
NOVS 0.0666-16.0%Aug 1 5:00 PM EST
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To: KirbyJF1 who wrote (1514)6/5/2012 3:09:02 PM
From: Covenant2 Recommendations   of 1876
 
Diamond announced May 24 that Oaktree Capital Management (NYSE: OAK) was investing $225 million in the company in an effort to solidify its balance sheet. In return for Oak Tree's investment, Oak Tree receives senior secured notes paying 12% interest that mature in 2020 as well as warrants to purchase 4.4 million shares at $10 apiece, representing a 16.4% ownership interest.

Even loansharks would be lucky to get such rich terms. Unless unusually good performance happens, a large percentage of the enterprise value just switched pockets from shareholders to vulture lenders.
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