Jul. 9 at 5:59 AM
$KODK The bad news here is that the convertible holders are in no hurry to dispose of their shares, as much as Kodak would like them to sell.
Why? Because KODK bumped their interest rate (Kennedy Lewis) to a fat 6% and pushed the redemption date out to June 2029, whereby 'if' they are still holders, KODK owes them
$100 per preferred share on a
$100 million base repayment—UNAVOIDABLE.
Unless a price pop happens, in which case they will happily unload stock into any liquidity provided by retail. Of course, as they unload, this has the opposite effect of killing any momentum.
Their 6% dividend is guaranteed, so much like the great CEO, they are equally "totally unconcerned with the stock price movements."
EG If the stock drops to
$4, they still get paid.
NOW, the only positive I have calculated is that the insiders' average cost sits at
$10 per share. If the stock rises into the
$12-
$15 range, they may choose to convert and take the profit, reducing/eliminating a cash payout obligation.
