what we missed is that Antara can hedge their position on swap (they only have to keep the voting rights). Your post nicely points out how cheap they got their shares, and thus, how incentivized they are to just lock in their multi-bagger.
today's price action basically proves (to me, at least) that they're hedging. I had thought the o…
what we missed is that Antara can hedge their position on swap (they only have to keep the voting rights). Your post nicely points out how cheap they got their shares, and thus, how incentivized they are to just lock in their multi-bagger.
today's price action basically proves (to me, at least) that they're hedging. I had thought the overhang of the ATM was lifted, but no - this works like the opposite of an Accelerated Share Repurchase. Call it an ASS - Accelerated Share Sale. AMC sells the APE shares to Antara, who then sells them into the market (on swap, via their counterparty).
i mean, nothing really changes in the whole story to your points, except that there's still APE overhang, and, potentially, lots of it... .
i think they can. they just can't transfer votes... " provided, however, that any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Purchased APEs does not impact the Purchaser’s ability to vote such Purchased APEs in favor of the Common Stock Amendment."
Yes I have the same understanding, and they wouldn't have included that language if they didn't intend to hedge via swaps. Similar situation as the ill-fated agreement between Elliott/TIG et al and Qualcomm on NXPI back in 2017/2018 (all those guys had the cash vs swap trade on)
Imo the risk on the arb using puts is more on the timing, given the high profile nature of AMC, there could be some delays/pushback on the SEC review of the proxy and 90 days is not a particularly long time to get everything in line for a special meeting
what we missed is that Antara can hedge their position on swap (they only have to keep the voting rights). Your post nicely points out how cheap they got their shares, and thus, how incentivized they are to just lock in their multi-bagger.
today's price action basically proves (to me, at least) that they're hedging. I had thought the overhang of the ATM was lifted, but no - this works like the opposite of an Accelerated Share Repurchase. Call it an ASS - Accelerated Share Sale. AMC sells the APE shares to Antara, who then sells them into the market (on swap, via their counterparty).
i mean, nothing really changes in the whole story to your points, except that there's still APE overhang, and, potentially, lots of it... .
I don't think Antara can hedge currently (look at 4.B, Purchaser Lock Up); i could be wrong
i think they can. they just can't transfer votes... " provided, however, that any swap or other agreement that transfers, in whole or in part, any of the economic consequences of ownership of the Purchased APEs does not impact the Purchaser’s ability to vote such Purchased APEs in favor of the Common Stock Amendment."
Yes I have the same understanding, and they wouldn't have included that language if they didn't intend to hedge via swaps. Similar situation as the ill-fated agreement between Elliott/TIG et al and Qualcomm on NXPI back in 2017/2018 (all those guys had the cash vs swap trade on)
Imo the risk on the arb using puts is more on the timing, given the high profile nature of AMC, there could be some delays/pushback on the SEC review of the proxy and 90 days is not a particularly long time to get everything in line for a special meeting