The exchange offer went through.
music selection: “Find Your Way Back” — Jefferson Starship
My bond in FET has been underwater as the company has been negotiating an exchange offer in a difficult to refinance environment. The company announced today that 96.1% of bondholders agreed to exchange their 6.250 coupon bond due 1OCT2021 for 9% convertible bonds due in 2025. This is a huge win as the new bond is “better” and moves from being unsecured to secured.
I picked up 21 dollars in unpaid interest and will share in 3.5 million in bonus incentive for tendering my bonds (about another 11 bucks). The old bonds have been removed from my brokerage and there is a cryptic “corporate action” item in its place until the new bonds are issued. I’m content to hold this bond until maturity or conversion now as it is secured and pays an attractive coupon. This is a nice win that removes some of the sting of holding JC Penny’s bond into bankruptcy, which I will likely recover nothing on.
Devour your prey raptors!