DEBT + DILUTION = CREDIT
So they found a Riskier Bank that was willing to allow for a "Longer Term" Agreement than what they could get with Wells Fargo. And because the period of time is now longer, but most likely at a relatively higher Rate, it costs less money than the "Same Amount" in a "Shorter Period Of Time" with Wells Fargo... Who apparently would not have even allowed the Loan in the first place. Obviously, some details are missing.
But do you see how they worded the "Comparison Statement" between the two Banks? And how it was worded to make it appear that it is some how a better Deal? This is a cleverly stated PR in my opinion, which does not do a fair overall comparison. I think it is a much worse deal when compared: "Apples to Apples". It's just another "Slick" statement that was cleverly scripted by Bankers and Attorneys, imo.
Now what about the Dilution, or "Securities" side of it? How much Dilution is at play here? And what is the Interest Rate on that "Longer Term" Agreement? They conveniently left out a lot of the overall Toxic Terms.
Also, There Is A Lot Of Other Garbage-Verbiage In This PR,
As They Try A Little Pandering To Break This News "Gently".
And Of Course, These Terms Might Be Disclosed In An 8-K.
But Only Released After The Market Closes "On A Friday".
What Else Would You Expect From This Company ?
Don't Fall For This. They're Trying To Be Clever Here.
JMO
