Feb. 18 at 7:38 PM
$CPS Bizarre price action given an up day in the market, strong earnings report, two analyst upgrades, and pending debt structure refi. Hopefully it is not an indication of how the refi is getting priced. Low trading volume probably exacerbating volatility,
$34 to
$48 to
$38 in three sessions is a lot of vol.
$38 per share implies less then
$20M interest savings on the refi. S&P CCC is at 11-12% and Moody's BB is at 6-7%. Pricing should be announced before the weekend, so not long to wait. If the market believes guidance and management commentary, valuation is almost mechanical at this point. It might be institutional investors are waiting until the refi is announced so it is just hedge funds and boutique managers playing in this until then.
