It looks as if Gulf Keystone (GKP) has got its $250 million rescue bonds offering away – but what does that mean for the equity? Hmmmmm.
Gulf had said it would not issue equity as part of this offering. Times change. There are 40 million warrants at just 102p going as part of the deal. It had to sweeten the offering and break its word just to get this away. And the yield? 13%. FFS that is junk bond territory. It is almost in credit card range. Whatever Gulf says about market conditions, blah, de blah de blah, it has just issued junk bonds.
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