Post by
veronikagermany on Nov 15, 2013 4:48am
TOTAL DEBT / EQUITY ratio remains 1 !!
Another good thing os this transaction with Maurel, is that DEBT / EQUITY ratio remains UNCHANGED and hovers at 1 (PRO FORMA)!
This is the analysis, according to TID:
The stockholder equity PRO FORMA is ~$195 million now.
The total debt is also ~190 million now. Here is the debt analysis I got :
208 - 50 = 158 million
+ 46 million (revolver)
TOTAL: 204 million.
TID will pay ~$10 million out of the $23 million CASH it got from Maurel and Prom and will bring it down to ~$190 million by the end of November.
and TID will keep the remaining ~10 million and it will have CASH, CASH EQUIVALENT and RESTRICTED CASH ~25 million. So the company is also full of cash.
Additionally, this $190 million total debt can drop well below $150 million when:
1) Sale of the two heli-rigs can bring ~$35 million.
2) HRT case can bring ~$20 million. This case will close by Q1 2014 THE LATEST, according to TID.
These two transactions will bring the total debt down to $135 million actually which results in DEBT / annual EBITDA < 3x which is the typical ratio for all the publicly traded companies of the sector that trade with PBV from 1 to 3 currently !
TID trades with PBV= 0.19 currently which is ridiculously low.
Comment by
RHertig on Nov 15, 2013 7:16am
Veroni, I thought they already received 15 million of the 23. I had assumed that is what they paid the September payment with. Am I mistaken on that?
Comment by
veronikagermany on Nov 15, 2013 9:04am
RH, you assumed right. However, we talk for different things. September payment was included in the total debt which has dropped to $190 million (including the revolver) as of TODAY, after the $50 million debt unload and $23 million CASH from Maurel.