I thought I was seeing things when reviewing a prospectus a minute ago for Hannon Armstrong Sustainable Infrastructure Capital (HASI).
They are offering $125 million in 0% senior convertible notes maturing in 2023.
Looking through it I guess you are simply buying a call option on the common shares with a $48.36/shares strike good for 3 years.
I guess in theory this could work out, but how about 1 or 2% for the holder?
This one I know I will take a pass on.
This market is a casino.
Very interesting.
Is this being sold at a discount to par value?
Tim, Morgan Stanley is the lead underwriter taking this issue public. You have to be pretty confident their investment banking team has this pre-sold in large blocks. So somebody, somewhere with $125 million is ready, willing and able to take it. Oppenheimer is the co-manager, so maybe they are going to load up some of their funds with this. . .
Like you, I will pass, but would assign a 51% chance it rises after IPO. . .
Shareholders seem to like it and why not – HASI up 7% on the day…. hard to believe I own the common but I do……
2wr–you know everything I hate just keeps going up–I need to buy everything I hate and sell those I love.
Tim – You’re preaching to the choir……
Tex–I noted the same things as you—it also won’t be exchange traded.