Skashion
Well-Known Member
No-one has ever managed to say what the terms are for the PIKs. There must be something preventing the Glazers from just paying them off. There is nothing else they are paying which is costing them so much. If they were to take another loan out at LIBOR it would be at a lower interest rate than the 14.25 (now 16.25%) of the PIKs and nor would it be rolling up. It also wouldn't make sense for the hedge fund to just let them off. If they hold out, they can get 600m so why would they want the Glazers to pay a third of that - which is what it currently stands at? Will someone with better knowledge of this arrangement please explain how it works?<br /><br />-- Tue Jun 08, 2010 4:36 pm --<br /><br />
Is this your work?Jonnos left peg said: