04-23-2009, 02:29 AM
Jeff,
Thank you for the compliments on my question-asking. I would be happy to help out on the finance committee but at the moment I am off island for long periods and just can't make a commitment to be at meetings with other committee members when they arrange to get together. If my situation changes I'll let you know. However, if there is something I can do from my laptop, remotely, I am willing!
And thank you for your post and explanations. They are very helpful.
If we are allowed to call the bond, maybe it would be a good idea now as interest rates have dropped. As I understand this type of bond, we can call it in and re-issue at a lower interest rate. It sounds like Drexia wants to pay us to kill that option and lock us in to the higher rates for the full term. I am sure the Board is considering what is the best option at this time (I'm just thinking maybe we shouldn't lock ourselves in.)
If we do put aside another $1,000,000 into the restricted account can we renegotiate better terms? If we are willing to have more restrictions, we should get something for it.
Is there somewhere (previous minutes or finance statements) where we can see the terms of the bond? This might help us to see the big picture and why the options or choices are not that obvious. For example, having the call option might not be worth an additional $500,000. And perhaps paying the penalty to return funds would cost us less in the long run.
Thank you for the compliments on my question-asking. I would be happy to help out on the finance committee but at the moment I am off island for long periods and just can't make a commitment to be at meetings with other committee members when they arrange to get together. If my situation changes I'll let you know. However, if there is something I can do from my laptop, remotely, I am willing!
And thank you for your post and explanations. They are very helpful.
If we are allowed to call the bond, maybe it would be a good idea now as interest rates have dropped. As I understand this type of bond, we can call it in and re-issue at a lower interest rate. It sounds like Drexia wants to pay us to kill that option and lock us in to the higher rates for the full term. I am sure the Board is considering what is the best option at this time (I'm just thinking maybe we shouldn't lock ourselves in.)
If we do put aside another $1,000,000 into the restricted account can we renegotiate better terms? If we are willing to have more restrictions, we should get something for it.
Is there somewhere (previous minutes or finance statements) where we can see the terms of the bond? This might help us to see the big picture and why the options or choices are not that obvious. For example, having the call option might not be worth an additional $500,000. And perhaps paying the penalty to return funds would cost us less in the long run.