Events
On April 14, 2011 R.W. Pressprich hosted a conference all to discuss our SELL recommendation on the Convertible Notes and Equity of Horizon Lines. Horizon Lines is facing several potential defaults on its bank debt and convertible notes and is facing a tough year ahead for its operations. We believe that a restructuring is almost certain at this point. The company, the banks and the convertible note holders have all reportedly hired financial advisors. In our opinion, there is considerable downside in both the convertible notes and the equity. We have, accordingly changed our recommendations for both the convertible notes and the equity from Market Perform to SELL.
On March 21, 2011 R.W. Pressprich hosted a conference call to discuss our BUY recommendation on the common stock and unsecured bonds of iStar Financial Inc. In our view, the company's successful closing of its $2.95 billion credit facility in March 2011 minimizes near-term restructuring risk. We see value in the unsecured bonds relative to other REITS and real estate operating companies, and we introduce a two-year price target of $12.93 per common share.
On February 7th, 2011 R.W. Pressprich hosted a conference call to discuss our BUY recommendation on the bonds of Opti Canada Inc. In our view, based on the value of the company's oilsands assets, there is ample coverage for the 1st-lien bonds and, in the low 50s, limited downside for the 2nd-lien bonds. Assuming the company can overcome the considerable problems involved in such a large engineering project, there is significant upside in the 2nd-lien bonds, even in a restructuring scenario, which seems likely. This favorable risk-reward ratio is the basis for our BUY recommendations.
On October 14, 2010 R.W. Pressprich held a Politics, Credit and Restructuring Conference at the Intercontinental Hotel in New York. The conference comprised several panel discussions covering topics including aviation finance, bankruptcy and reorganization, and financial reform legislation. Following is the webcast of the conference as well as an agenda of analysts and guest speakers in attendance.