While the company will still use the proceeds to buy back the bonds maturing in 2017 and 2018, it scrapped the plan to hold a public tender for the 2019 securities…”If I were in the 19s I would be pretty upset as well,” Wen Li, an analyst at debt-research firm CreditSights Inc.
So it was nonsense buyers after all, from Bloomberg:
Franklin and Capital Group helped lure the iron-ore producer back to the market by agreeing to buy most of a $1.1 billion chunk of securities in a so-called reverse inquiry…The sale allowed the money managers to swap their lower- ranking unsecured notes for secured debt that paid more, according to a second person.
…After the $1.1 billion that Franklin, Capital Group and the two smaller investors in their group received, the remaining $1.2 billion of bonds issued by Fortescue were allocated to 150 investment firms…
Well, well, so the big money managers are both deepening their bet on FMG and hedging it from the inside as well.
What they see in it I have no idea unless they are representing some Chinese money…
