CASH PAYOUT CALC
Only the unsecured get the cash payout.
2.2 Billion of Unsecured Notes
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10 million Cash Payout
10,000,000 / 2,200,000,000 = 0.00455
so that's $0.00455 per $1 of Unsecured Notes
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New Building Note Proceeds
27,000,000 / 2,200,000,000 = 0.01227
so that's $0.01227 per $1 of Unsecured Notes
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add together the cash payouts
= $0.01227 + $0.00455 = $0.01682
Thus, for every dollar ($1.00) the original purchasers of the note spent they will get back 1.682 cents...($0.01682).
Sounds pretty bad if your the original purchaser but if you buy the bonds at seven cents on the dollar...it's a big cash back discount.
7.000 (cents) - 1.682 (cents) = 5.318 cents on the dollar of unsecured value.
so while I'm dishing out $7/$100
I'm getting some back
my actual cost is .... 5.32/$100
I really can't write anymore but couldn't resist putting this out.
