RE:Ouch 🤕 swingtradeeeeee wrote: Another half a point on that floating rate debt. Maybe 5 dollars a share on the NYSE, 50% dividend cut leaving a 6% yield. Just a guess from one of the dumb retail investors.
From the Q3 conference call:
At the end of Q3, approximately 22% of our consolidated debt outstanding was subject to variable interest rates. A 100-basis-point increase in the variable interest rate would impact interest expense by approximately $16 million annually, of which, an estimated 70% would be related to our regulated business. For our regulated business, interest rate increases are expected to be recovered in the context of future filings, late filings. From that info, every 1% increase in the variable interest rate has a net pre-tax long term effect of about $5M on earnings, which is less than 1 cent per share on an annual basis.