06.19.09

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How Big is Novell’s Debt?

Posted in Finance, Novell at 1:44 pm by Dr. Roy Schestowitz

Summary: A call for joint research on an important subject

Novell’s little helpers have been particularly noisy recently (mostly libel and person attacks), which means that we are getting close to something which they are trying to hide by smears and intimidation. A couple of days ago we wrote about Novell and debt, so the question we ask today is, “how big is Novell’s debt?”

Comments that are personal attacks would be less than welcome. We never censored comments.

For background, here is an article about Novell (published just before the defeatist deal with Microsoft):

Novell Inc has denied that it is in default over the terms of a $600m debt offering following the delay in filing its financial reports for its third quarter, which has also prompted the threat of delisting from the Nasdaq.

For context, see this post from 2007.

According to Wikipedia, “In finance, default occurs when a debtor has not met his or her legal obligations according to the debt contract, e.g. has not made a scheduled payment, or has violated a loan covenant (condition) of the debt contract. A default is the failure to pay back a loan. Default may occur if the debtor is either unwilling or unable to pay their debt. This can occur with all debt obligations including bonds, mortgages, loans, and promissory notes.”

We tried to find out how big Novell’s debt actually is, but we were not able to find an answer. We invite readers to politely help us find out the truth. █

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2 Comments

EDGAR reader said,

June 19, 2009 at 9:30 pm

Novell sold $600m in debt in 2003 or earlier. They bought a significant portion back in 2008. (“Senior convertible debentures” http://edgar.sec.gov/Archives/edgar/data/758004/000119312508259170/d10k.htm#toc57209_10)

As of April 30, 2009, this debt stood at $122m. (http://edgar.sec.gov/Archives/edgar/data/758004/000119312509127853/d10q.htm#tx49928_3)

This amount is likely to be reduced soon, as there is na offer to buy back the debt until July 15. (http://edgar.sec.gov/Archives/edgar/data/758004/000119312509130573/0001193125-09-130573-index.idea.htm)
Shane Coyle said,

June 20, 2009 at 1:28 am

Well, I’d bet that the article you linked to back then is likely referring to the very same situation that they filed this 8-K over.

On October 31, 2006, Novell, Inc. announced that it has amended and extended until 5:00 p.m., New York City time, on Thursday, November 2, 2006, its solicitation of consents from the holders of its 0.50% convertible senior debentures due 2024 (CUSIP Nos. 670006AB1 and 670006AC9). Novell is seeking consents to proposed amendments of certain provisions of the indenture pursuant to which the debentures were issued and a waiver of rights to pursue remedies available under the indenture with respect to certain alleged defaults thereunder. A copy of the press release is attached as Exhibit 99.1 and is incorporated by reference herein.

Recognize the date?

(Credit to Symbolset for this insight, this was originally covered here)