"Only a bankruptcy can interrupt interest payments. And this bond’s claim is junior only to Linn Energy’s $2 billion credit line, on which just $75 million is currently drawn. "
Bankruptcy priority is a bad reason to buy. Been there, done that. You'd be surprised at how little the average investor gets even on a secured position in bankruptcy these days. The big guys have smart lawyers. Bankruptcy courts look like a honest process but you have a better chance at beating a Chinatown Chicken at Tic-tac-toe than coming out a winner. The odds are stacked against you.
Newsleter writers like Conrad should be taken with a grain of salt. His statement may be legally accurate, but it is certainly misleading. I don't follow this stock, but Yahoo is showing debt at $4.93 billion. This far cry from a $75 million.
Just my opinion.
The Chicken Always Wins
Chinatown Fair Is Back, Without Chickens Playing Tick-Tack-Toe