Accentuating the caveat emptor perspective with critical commentary on financial disclosure. I adopt a skeptical persona and look for chinks in the teflon coating of financial disclosure. My job is to identify financial warts. Perhaps a Black Swan. Disclosure: I do not hold positions in stocks mentioned for three trading days before or after blog post.
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.