The era of buying back at high prices gives way to
equity issuance at low prices.
In combination with the anti-dilution provisions contained in the Convertible Preferred Stock (the «BFC Preferred»),
an equity issuance at current levels would be significantly dilutive to existing shareholders (even if completed through a Rights Offering).
Not exact matches
«While everyone is focused on valuation and bubbles (to some degree rightfully so), the fact remains that the last few years have been supported by a low level of net
equity issuance that has, all else equal, supported prices,» says Dan Greenhaus, chief global strategist
at BTIG.
Revenue from
equities trading as well as advising on mergers, IPOs and debt
issuance helped fuel gains
at the investment bank, with UBS saying the results would have been even stronger excluding currency effects.
In addition, we also recorded Related - Party Warrants
at fair value of $ 83.4 million on the date of
issuance as a reduction to the carrying amount of the related - party debt and a corresponding increase to stockholders»
equity.
Thinking of bonds as having sold a put option to the
equity, why not look
at the amount that the stocks of the companies issuing the bonds had fallen in price since
issuance of the bonds?
So, that's my preferred measure for how much has the underlying value of the firm increased: growth in fully diluted tangible book value (ex-AOCI), adding back dividends, and subtract out net
equity issuance / buyback measured not
at cost, but
at the current market price.
Growth in fully diluted tangible book value (ex-AOCI) is a good measure of firm performance, if you add back dividends, and subtract out net
equity issuance / buyback measured not
at cost, but
at the current market price.
Access to (even high interest rate) debt was pretty limited
at the time & further
equity issuance would obviously have been dilutive.
Stephen McKeon, a Finance professor
at University of Oregon who is studying cryptoassets, security
issuance, private
equity, and M&A, recently wrote an extremely intriguing blog post.
Proficient
at analyzing cost of operations and identifying areas for improvement, corporate portfolio management, and debt financing and
equity issuances.
Previously, he was a Managing Director
at Wells Fargo Securities / Eastdil Secured, responsible for providing investment banking services to both public and private real estate companies, including
equity and debt
issuance, corporate advisory and mergers & acquisitions activities.
Equity investors are happy to give more money to REITs to invest: most of the investment trusts are trading
at prices higher than the accounting value of their assets, meaning stock
issuance is relatively cheap for them.
•
equity issued by us in exchange or conversion of exchangeable senior notes based on the stock price
at the date of
issuance;