Those 7% converts have to be in play with the 1.5 bn......which is why I was hoping for something in that range.
Either they have a deal in place to redeem at a premium or they are ready to buy hard now through December when they convert to shares.
EDIT: With the 1.5 bn + the additional 400 ish mn borrowed against the revolver to complete the Liberty buyback......their debt to Ebitda ratio stands at about 4.16 to 1. Take out the 7% converts and that ratio gets back under 4.......about 3.8 to 1........or a comparable pay down on the revolver with the proceeds.
Last edited by denco1; 05-01-2014 at 04:59 PM.
Denco...great call my friend!!!!
Hope we get the move up to go along with it......GL to the longs
Ha....that'd be awesome MLS........we'd all be rich. Thanks man!....a lucky guess with the long white candle low to high of the day yesterday. Just hope we get some follow through. The longs have been battered for 6+ months.....we need a turn.
Not sure what I wrote didn't go through, but great call Denco. I like that they are being aggressive and doing $1.5B now and getting the debt/EBITDA ratio up to 4 quickly....
Thanks BassMan and Steiny!
Yes, being more aggressive in appearance with the 1.5 bn may give the longs a bit of support in the short term. What will really give the longs some support for the next few months going into year end will be acting on the aggressive appearance and hitting the open market at these low levels...........GL to the longs