BLCO is the recent spinoff from BHC. BLCO issued 10% of its shares in the IPO and can issue another 10% as part of a tax free spinoff. The remaining 80% is being used as collateral for BHC's 20B+ debt. If BHC can get it's leverage down and meet bond covenants, BHC can complete the spinoff by issuing the remaining 80% of the BLCO shares to BHC shareholders.
The main risk is that BHC won't be able to meet the bond covenants due to the current economic issues. It's stock price crashed recently due to Q1 results. I personally decided to take a bet and start loading up on BHC at current prices ($10) in hopes that I get the remaining spinoff shares later. BLCO is currently trading over $15. It's a high risk, long term play.
I'm putting 1% of my portfolio into this bet and hopefully I'll see something good in a year, two years, or three years lolol.
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