billddrummer

Let Thornburg's Demise Be a Lesson to You

Not in my opinion. Even if the warrants are fully absorbed (doubtful) Thornburg will still be liable for the bank loan at 12%. And it could rise to 18% depending on what the market cap becomes after the warrants are exercised. The more the leverage, the higher the interest rate. Add to that the fact that although the mortgages are good quality, there's still no market for them at par. Much less at a premium.

Looks like a choice between crashing nose first or bouncing on the fuselage once. Either way, no one will get out without injury.