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Diamond Foods (DMND +2.4%) back on the rise after locking in a $225M recapitalization investment...

Diamond Foods (DMND +2.4%) back on the rise after locking in a $225M recapitalization investment from Oaktree that had buzzed on Monday. The deal has new senior notes and warrants for 4.4M shares that could be canceled depending on walnut crops.
Comments (3)
  • I'm not following the affect or probability of this 4.4M share cancel.
    25 May 2012, 01:15 PM Reply Like
  • Diamond has goals to meet and if they meet them, then Oaktree's warrants to buy 4.4 million shares at $10/share are cancelled and insteady they get fewer shares at a higher price (~$20.something if memory serves).

     

    Diamond's goals are a specified volume of walnut purchases in the coming season and a set level of profitability. I have heard the numbers for their goals but I have not had them confirmed. I would be skeptical of their ability to meet them though.
    29 May 2012, 11:47 AM Reply Like
  • Ok thank you for the explanation. That's a decent amount of shares, but I don't know much about the industry. In essence, I would hope that management wouldn't pick impossible goals without doing some research.
    30 May 2012, 09:27 AM Reply Like
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