TSX:CUS.DB.D - Post by User
Comment by
phoenix_traderon Oct 15, 2015 3:18pm
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Post# 24195128
RE:Shareholder Approval of Deal
RE:Shareholder Approval of DealGiven the current trading range of low $1.40's the market is saying the deal is maybe dead. All boils down to whether the COP of $27.4 mill for Q2 is about what we can expect for the next few years. If it is then the bank debt can be paid off in 3-4 years as capex can be scaled back and debt retirement prioritized. Obviously your cost is a lot lower than the majority who may decide the present assets of CUS are better than a levered up Superior Plus. Just how safe is the SPB dividend is a question CUS shareholders should ask. SPB's most recent Q shows 54% of cash flow from operating activities was paid in dividends. SPB is borrowing to buy CUS, can it pay the interest and dividends? Are CUS shareholders better off now that the NATO albatross is gone with the chemical assets. Give us the forecasts and we might be able to make a decision.