Q: Please comment on EIF's Bought Deal of $100m at $52.25.What is the purpose?What will be the impact going forward? Txs for U usual great services & views
5i Research Answer:
The discount to market will impact the share price in the short term. EIF also typically announces an acquisition with its issues, and did not in this case. But, recent news from Carson Air and PAL Airlines is good and may require some funding. Debt will be reduced, and money will also be used for general corporate purposes. The issue was upsized so there does appear to be demand here.