Post by
cg16 on Oct 03, 2016 9:07am
Payment in December?
The performance based earnout being triggered means Amco is performing as expected which is good news. (Grew 8% q over q last quarter). Paying half of the earnout without using the revolver is good news. Would've been better news if they paid it all without revolver but I don't think anyone expected that. The company needs some cash on hand to run the day to day business so keeping a cushion makes sense.
Interesting part: How is the payment moved from October to December? Does it mean Cinven has agreed to new terms? Seems like they are partnering not trying to scoop the business back?
Comment by
Lumberfeverlong on Oct 03, 2016 9:10am
Cv, as I mentioned in my prior post, the company had until September 30th to defer, but the calculation of the gross contribution by the international operations from the Amco deal gets calculated over the next couple of months based on a process set forth in the Amco purchase and sale agreement. That is why hey have until December to pay.