Some Venoco

I picked up a few shares of Venoco, Inc. (Ticker: VQ) today at $11.21. This company has agreed to a management buyout for $12.50 per share in cash. It’s a high risk merger arb play as the financing is not yet complete. The financing is currently being finalized with a deadline for completion of the deal by September 14th. I would say that there’s more than a 50% chance that this deal gets done. The company should be making an announcement on the status of the financing by September 4^th. This position only makes up ~ 2.7% of my portfolio. I guess we’ll know the outcome of the debt financing next week…