Post by
BBDB859 on Apr 19, 2021 11:31am
Debt Reduction #'s
Bert Demosky says that $2.4B has been deployed with the tender.
We had $3.6B remember.
-At issue is the July 2021 Euro Bond, for $500 M US. That will be taken out by the Alstom shares in June2021.
-That will take us with a total $2.9B used by june 2021.
Leaves us with $600M from BT, and $1.8B Cash on hand. Close to $2.4B remaining after June 2021.
-All of 2021 paid. when Euro bond is paid by Alstom shares in June.
-2022 $1.7B - $315M = $1.4B remaining.
-2023 $1.25B - $225M = $1B remaining.
This is what I see happening.
-2022. They pay another $600M down from BT money, and renew $800M of $1.4B remaining debt, from above. Hopefully they'll get $800M @ 3.5% interest rate.
-2023. They'll pay $500M from the cash on hand and renew the $500M remaining @3.5%..
-2024. This ends the BT cash outlay. It also deployees some of the cash on hand.
That leaves us with the $1.3B in cash reserves.
Remember the Cash Reserves are used for the Inventory and Operating cash of the company if they don't get low rate LoC's, or Facilities in place.
a) So what they'll end doing is? Get a low rate, credit facility, or LoC, to losen the extra cash of ($1.3B) on hand from now, to the end of the 2021. So that if they need the flexibility to deploy some of the cash on hand, to debt from now to 2024.
b) They then, will rely on FCF savings/profits, from now till the end 2023 to reduce, and or renegotite debt beyond 2024.
Not bad from a company that was goign BK.
Runway till 2024.
Now set an apointment to get your shot, and go out, and enjoy the beautiful weather. I'm going to do just that.
These manipulators are going to do whatever they want with the SP, until they get caught at their own game. The Manipulators, will only get caught if the BOMBER shows the market, that they're into positive FCF starting immediately in Q1 2021.
Comment by
Jim99999 on Apr 19, 2021 11:48am
Yep, your numbers are close to mine, although I think they will keep cash on hand at $1.5B. That is why I have them raising $1.5B and you have $1.3B ($800M+$500M). As you've said in the past, cash on hand may be able to be reduced as their FCF improves. Jim