After raising money back in 2005, KrisEnergy is back at the deal table due to their upcoming notes this year. Seems that it was a pretty good deal for the shareholders, as the zero coupon bonds that were issued are secured. However, instead of a vanilla zero coupon bond mechanism, they moved the discount on the zero coupon bonds to the free warrants attached to the bonds. Pretty cleverly designed – I guess the apple doesn’t fall far from the tree (Keppel). Personally I didn’t like the way bondholders were treating KrisEnergy, as the noteholders were most likely to believe that it is a “low risk, high returns” instrument, and they would be ranked first in the case of a default – never mind if the company fails, as long as they get their money back. Sadly, in the mad chase for “low risk, high returns” securities, it would seem ......