tag:blogger.com,1999:blog-4886595570005494885.post5259727339030713532..comments2009-02-21T13:34:31.116-05:00Nurseb911http://www.blogger.com/profile/04974722323117696369noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4886595570005494885.post-23562726774173235012009-02-21T13:34:00.000-05:002009-02-21T13:34:00.000-05:00Thanks Jae,<BR/>What really surprised me on Wednesday was the fact that CNR's issue was priced at under 300bps over a US 10-year bond considering the strength those tresuries have had with the flight to safety. It doesn't appear they had any trouble filling their intended amount so you could almost make the case that the company can't afford to issue more at such a discount to their peers. With their equity at such an attractive level (undervalued IMO) this would be one of the cheapest ways to raise capital. They might even come back to the market if they identify a strategic acquisition but likely not on the scale of the recent Roche bond issue to fund the Genentec purchase.Nurseb911http://www.nurseb911.com/noreply@blogger.comtag:blogger.com,1999:blog-4886595570005494885.post-83896570031104254432009-02-21T13:01:00.000-05:002009-02-21T13:01:00.000-05:00Excellent point Brad.<BR/>A coupon rate of 5.5% today is extremely good especially when many good companies are desperate for cash and end up financing at far too high rates.Jae Junhttp://www.oldschoolvalue.comnoreply@blogger.com