Friday, June 16, 2006

Biovail Loads Up on Debt

Biovail Corporation (NYSE:BVF)announces a major restructuring in its debt. They have sourced cash and have some clout with the lenders. This is usually a good time to extract better terms and conditions. The press release does not provide any information on what the functional covenants are. Debt ranks ahead of equity. Investors need to know whats what upstairs before they get blind sided. Transparency this is not.