the warrants we are talking about are for Yellow Media in Canada, which were just issued as part of the recent recapitalization. strike price around $29, 10 year term, trading below $2, the company is generating $8 FCF which is stabilizing, debt will be gone in 3-4 years. Y.WT on the toronto exchange.
The debt has been significantly reduced due to this recap. I think Yellow Media now carries far less risk than DEXO/SPMD, but the latter has much more upside if they can dig their way out of the debt. If the transition continues as expected, I would expect the lenders to refinance as they basically just did with the merger. Also, they are able to repurchase the debt below par so the debt could be reduced faster than the models suggest.
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