Replies to post #5523 on Savvy Trades and Investments

[abh3vt]

Micham2012, re TSEM debt refinancing. I think this news was largely expected. On the last quarterly CC, this refinancing issue was raised and discussed:

Cody Acree - Ascendiant Capital Markets
And then lastly from me, you mentioned in the press release offers to restructure your debt. If you could maybe talk about what your expectations are there and how that might affect your share count going forward and obviously your interest expense?

Russell Ellwanger - Chief Executive Officer
We are looking at some ways to improve our balance sheet. Anything that would be entertained as a non-dilutive event would be exchanging shorter term debt for longer term debt and for the most part would be a wash or a betterment as far as the coupon that we’d be paying.

Cody Acree - Ascendiant Capital Markets
Are there any instruments that are convertible today than that share count you went through that could be eliminated in the kind of debt restructuring?

Russell Ellwanger - Chief Executive Officer
No, it would not I think have anything to do with. You’re referring to some of the convertible bonds.

Cody Acree - Ascendiant Capital Markets
Yes, that. So any restructuring would not impact any of the potentially dilutive instruments that are out.

Russell Ellwanger - Chief Executive Officer
No, it would not.

-------------

Thus, this news won't really impact the income statement in the immediate future. If they had been able to get rid of those converts, then I'd agree that this would be big news.