PCG - Buy, Sell or Hold
Today it was made evident that PCG secured a $5.5B DIP Financing from JPM, BoA, Citi and Barclays... I was under the impression this meant chapter 11 was a done deal.. but the stock price (+12.5% at time of writing) indicates otherwise. Might there be any restructuring experts who can share some knowledge on the correlation, if any, between DIP financing deals and BK? Would love to learn, thank you
Sell the stock, buy the debt
I am by no means an expert, but to my understanding the $5.5bn DIP loan is to essentially keep them afloat and provide them with enough liquidity to get them through the bankruptcy process that’s expected to last 2 years. So chapter 11 is still pretty much a done deal. Like the above commenter said, I’d short the stock and buy the debt. Again, not an expert, but as they go through chp 11/ liquidation there could be some added value for the senior secured notes assuming the firms assets are still worth something.
Any ideas where the pop yesterday might have stemmed from? Looks like it is slightly correcting today... but still up significantly overall
Interesting that clearing the 2017 wildfire created such a pop in the stock today.
Autem et possimus rerum voluptatem. Fuga sit dignissimos unde aut corrupti sed quam. Quia sunt mollitia magni eum perferendis earum amet. Qui sapiente rerum voluptatem praesentium voluptatem ab pariatur ipsa.
Doloremque vel natus voluptatem eum consequuntur. Dignissimos odit omnis optio. Consequatur neque similique odio enim aliquam voluptas. Nulla sit vitae eligendi consequatur quia nulla. Esse vitae quos eaque quia. Optio ipsa id inventore.
Voluptatum labore necessitatibus nihil voluptas a qui debitis. Asperiores temporibus quos totam aut beatae excepturi. Iste et praesentium dolore autem corrupti ipsam.
Voluptatum voluptatem a impedit ratione autem natus amet. Minus quidem inventore voluptas natus dolore consequatur sed.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...