Q: I'm looking for some help in understanding the Sandbox transaction Alaris Royalty just reported.
Given that they didn't receive full value on the preferreds, doesn't that mean the common for Sandbox was worthless? Do you have any information on the other details of the transaction.
I've scanned the last three quarterly reports, I see quite a few top up investments, both additional Preferreds and debt. I didn't see any red flags in comments until Q3 where the investment was written down by $4 million and the rating was lowered. Certainly nothing indicated the common equity of Sandbox was worthless. It looks to me like they were blindsided.
What am I missing? Should I be concerned about a possible re-evaluation and writedowns of Alaris Royalty's other investments?
Thanks as always.
Peter
Given that they didn't receive full value on the preferreds, doesn't that mean the common for Sandbox was worthless? Do you have any information on the other details of the transaction.
I've scanned the last three quarterly reports, I see quite a few top up investments, both additional Preferreds and debt. I didn't see any red flags in comments until Q3 where the investment was written down by $4 million and the rating was lowered. Certainly nothing indicated the common equity of Sandbox was worthless. It looks to me like they were blindsided.
What am I missing? Should I be concerned about a possible re-evaluation and writedowns of Alaris Royalty's other investments?
Thanks as always.
Peter