Clarion Finanz turns out to show Merrill Lynch how thing must be done in a partnership. It has converted it’s part of the debt into equity, with a conversion price of $22.65, a price we’re rapidly approaching.
This shows they can only be very confident on the drilling at Elk4. It’s a very bullish sign, there is just no other way to read the situation. The fact that Merrill hasn’t done a similar deal (yet?) distracts somewhat, but not a whole lot, it probably indicates that they are just a little more greedy than Clarion.
Since the three of them have a common interest, Liquid Niugini, the proposed LNG facility, that’s not the way things are done.
2 responses so far ↓
1 roberto // May 6, 2008 at 3:52 pm
dear sirs, could you explain a little about just what type of shares these were in this ‘equity’ deal and where did they come from. thanks
2 Update on InterOil: Fasten your seat-belts! // May 8, 2008 at 1:07 am
[…] be any day now. Then, there is the unsettled issue of the outstanding Merrill Lynch loan ($70M). We argued earlier that Merrill should take the lead from the other holder of the same loan, Clarion Finanz, who […]