What a brilliant investment by Howard Marks.  He is getting a 12% annual yield on $225 MM of debt and warrants to buy 4.4 million shares at $10.  Even if Diamond goes bankrupt Marks would likely make money by reorganizing the company which would still have its solid brand portfolio.  If the company thrives Marks will make a windfall from the warrants.  Either way Oaktree will have de facto control over the company.

http://www.gurufocus.com/news/177756/howard-marks-oaktree-capital-to-invest-225-million-in-diamond-foods

INVESTING IN THE FINANCIAL MARKETS INVOLVES RISKS. OPTIONS ARE NOT SUITABLE FOR ALL INVESTORS.