Replies to post #490 on High-yield/macroeconomics (fka YIELD)

[Democritus_of_Abdera]

MPW Exchangeable Senior Notes...

Abreis, you might find the prospectus regarding a new share issuance by MPW of importance with respect to your recent purchase...

see: http://www.sec.gov/Archives/edgar/data/1287865/000095014408001923/g12259e424b5.htm


I'm not a financial expert (just a retired anatomist), but I worry when a company makes a private placement of exchangeable notes concurrent with a public offering of stock... It opens up a possible short opportunity for those who receive the private placement. Often the stock price drops dramatically in such situations when the float is relatively small.

The risk factors in the prospectus are explicit.. They detail how the dividend might be jeopardized by the companies current acquisition plans.