The financing terms on the recent note (as I recall) were with an interest rate of 9.5%, compared to the note's previous rate of (again, from memory!) 12%.
The company is not in any financial distress, and there is heavy interest in the rail car business, now in the sale process. Proceeds from that sale, when completed, will almost certainly be used in a balanced way to retire debt and some equity.
ITS continues to grow, and Delphi is obviously getting further along the sales cycle (which is quite long for this product).
The common shares are reacting to margin/tax loss selling here. If the company's financial condition was perceived to be imbalanced in any way, the refinancing of the debt highlighted above could never have been completed at a substantially better rate. In fact, for those of you not paying attention, those debentures were replaced at a lower interest rate than exists on the CONVERTIBLE Simula 8's of 2004.
Think about that for a moment. |
