RE:RE:RE:RE:RE:On the debtWhy would we issue equity to pay down debt? As far as I can see, the debt is not a problem. Paying it off with free cash flows going forward is fine. And when there are projects that have higher probability-weighted rates of returns, management can decide whether more prudent to pay debt vs. pursue project.
I think when our market cap equity is anywhere above $10Bn (share price north of $100), the current debt load will not be a problem as we will have plenty of equity cushion, our EBITDA will be growing and hopefully approaching $2-2.5Bn/year, meaning our leverage ratio will come down...
Though it depends on their calculations of cost of debt vs. alternatives, I'm okay with the debt as long as we can grow our EBITDA, free cash flows and find high rates of return on expansions and new projects.
We seem to be in the clear for $100/share... the fundamentals of the firm are more solid than a year ago and we have a good launch point. Bombardier is going to $200/share, $8 pre-split.
When the Alstom cash is unlocked or if we get any more from them, that money can be used to redeem upcoming notes.