|Shares Out. (in M):||2||P/E||0||0|
|Market Cap (in $M):||178||P/FCF||0||0|
|Net Debt (in $M):||0||EBIT||0||0|
|Borrow Cost:||Tight 15-50% cost|
|Entry||10/28/2016 08:30 AM|
Doesn't the borrow cost destroy the "force-collapse" spread?
You list 15-50% borrow costs. At NAV / price of 65% and a full year for the restricted to become unrestricted, doesn't the arbitrage more or less disappear? You can lock in 35% downside, but might have to pay 15-50% to get it...
|Entry||10/28/2016 01:09 PM|
Yes borrow is tight; I should have included in the writeup that this is likely only suitable for PA's (especially given nature of the private placement arm of the arb).
Shares come and go, but I typically see about 2,000 shares come online for borrow each week or so at not egregious borrow rates. It is unfortunate that more borrow cannot be secured - and is likely a reason why the spread exists.