TSX:CUS.DB.D - Post by User
Comment by
LegoGuyon Mar 31, 2015 3:55pm
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Post# 23583253
RE:Canexus Guidance for 2015
RE:Canexus Guidance for 2015HAWK37 wrote: So, based on Ocean112's e-mail from yesterday (Ocean112 appears to be the unofficial spokesperson for Canexus, definitely an insider), Canexus is planning the following for 2015: 1. 2015E EBITDA of $91.5 million. Cash flow for the HCl business will decrease 20% to $21.5 million (that will help the sale of N Van). 2. NATO will have negative cash flow of $15 million in 2015 (who wouldn't pay $250 million for that business?). 3. Canexus has a $65 million capital program for 2015 which will be fully debt financed. 4. Canexus will end 2015 with $410 million in debt (not including the January dividend payment of $17 million). 5. Canexus will take its bank debt up to 4.5 times EBITDA, which will be at the limit of its covenants. What do they say about being in a hole? The first thing to do is to stop digging. Damn the torpedoes! RH
They are obviously planning to take on more debt so it looks like this 'Unofficial Guidance' is true. Scary.