Why did PCS agree to an equity split before negotiating the interest rate and make-whole provisions
of the $15 billion in intercompany notes owed to Deutsche Telecom AG ("DT")?
The notes feature an optional redemption at the company's option, subject to make-whole provisions
Management believes that these non-GAAP measures can be useful for investors to evaluate our financial performance by providing the results of our company's primary business operations, excluding, as applicable amortization of intangibles, certain litigation, CEO transition expenses and other unusual or non- recurring costs, as well as share based compensation expense under FAS 123-R and changes in the value of the make-whole provisions
for our convertible note and takes into account the tax effect of these adjustments.
The Restated Indenture governing the Restated Notes will set forth other important terms of the Restated Notes, including, without limitation, provisions relating to the holders' put option, mandatory and option redemptions, interest make-whole provisions
, and restrictive covenants.
Several structures also used optional calls with make-whole provisions
In addition, the covenants give a special-purpose trust vehicle control of certain contractual payment rights and contain make-whole provisions
for existing noteholders.
In its rating analysis, Fitch considers the impact of a more lumpy debt service structure and make-whole provisions
on an issuer's financial flexibility.
However, low interest rates (due, in part, to interest rate hedges) and make-whole provisions
in the company's debt agreements make the early prepayment of much of Con-way's debt relatively expensive and, therefore, uneconomic.
Further, the make-whole provisions
terminate if the trading price of Youbet's common stock meets or exceeds $6.