Use of Revolver
I haven't posted for a long time but am trying to decide whether CXR goes bankrupt or not. if not, then it won't go to zero (or whatever the market prices insolvency at.. $1-$2 maybe)? and if not, then at some point its worth taking a shot a buying again.
Craigbad made a very good point and nobody has followed up on it.
Meihm signalled quite clearly in his RBC report this week that CXR will be using their revolver here shortly. The big question is how are they using it? (or maybe why?) If they use it to pay out Cinven fully in October, and avoid the 8% charge for deferring to Feb, then its not such a bad thing. But if they use it to cover the mandatory half of Cinven earnout in October and still defer the other half to Feb then it seems to me this is a clear signal that they don't produce enough cash anymore...
Craigbad, you said you know the answer to this. can you share it please?
to make it more interesting, RBC is now under restriction... so something is happening..