Im proud of my Continental play in its debentures, not its equity.
As Metropolitan expanded throughout the 1990's, state regulators kept a tight rein on the company, making sure that its operations would generate enough cash to repay investors who bought its debentures, a form of unsecured debt.
Alternatively, two years ago Hong Kong International School bought back all its debentures and then reissued them at a higher price much as a company might when business is good.Even so, the debenture systems are opaque the ratio between debenture-holders and accepted students is unknown.
True, Ford touched down at a buck, and its debentures sold way below par.
Oakapple will repay its debenture after 20 years but will pay investors between 7.35 per cent and 8.6 per cent per year in twice-yearly payments in the meantime.
The company, which is based in Atlanta, said the difference was a result of a redemption of $250 million of debentures on July 1.
The redemption of the trust preferred securities will result from Ford redeeming for cash all of the $2.98 billion aggregate principal amount outstanding of its 6.5% junior subordinated convertible debentures, held by Ford Motor Company Capital Trust II.
Each held about 20% share in the company, with the balance made up by small investors who had some affinity with the club; the initial agreement called for a long-term debenture of $400,000 to be set up that would sustain the rowing club in the absence of its football income.
The operator of North America's largest fleet of school and intercity buses, Laidlaw Inc. of Burlington, Ontario, has deferred semiannual payments of $23 million on three series of debentures as it continues to negotiate new agreements with creditors.
Most significant, Metropolitan no longer had to abide by the state's limits on the amount of debentures it could issue.
