Re: First good idea
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The key question on the pulled financing is, "Did they do it from weakness or from strength?" I believe, strongly, that it was from strength. They were offered 9% which is at least as good as the street was expecting. They likely walked for technical reasons around covenants (this is a financial flexibility issue) and secondarily because they think they can do even better on the rate. The lenders played a game of chicken and DSUP said F*** you. You dont do that when you are in trouble...you take the $ and run.
This does expose them to some interest rate risk (but that is just risk in the volatility sense...could get better, too).
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I'm glad they waited to refinance.
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