Join today and have your say! It’s FREE!

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Please Try Again
{{ error }}
By providing my email, I consent to receiving investment related electronic messages from Stockhouse.

or

Sign In

Please Try Again
{{ error }}
Password Hint : {{passwordHint}}
Forgot Password?

or

Please Try Again {{ error }}

Send my password

SUCCESS
An email was sent with password retrieval instructions. Please go to the link in the email message to retrieve your password.

Become a member today, It's free!

We will not release or resell your information to third parties without your permission.
Quote  |  Bullboard  |  News  |  Opinion  |  Profile  |  Peers  |  Filings  |  Financials  |  Options  |  Price History  |  Ratios  |  Ownership  |  Insiders  |  Valuation

Yellow Pages Ltd T.Y

Alternate Symbol(s):  YLWDF

Yellow Pages Limited is a Canadian digital media and marketing company. The Company offers targeted tools to local businesses, national brands and consumers, allowing them to interact and transact within the digital economy. It offers small and medium-sized enterprises (SMEs) across Canada full-serve access to a comprehensive suite of digital and traditional marketing solutions, such as online and mobile priority placement on its digital media properties, content syndication, search engine solutions, Website fulfillment, social media campaign management, digital display advertising, video production, e-commerce solutions, as well as print advertising. Its media properties, primarily desktop, mobile and print, continue to serve as effective marketplaces for Canadian local merchants, brands and consumers. The Company holds local online properties, including YP.ca, Canada411 and 411.ca. It also holds the YP, Canada411 and 411 mobile applications and Yellow Pages print directories.


TSX:Y - Post by User

Bullboard Posts
Post by DoubleIndemnityon Nov 13, 2019 5:43pm
250 Views
Post# 30347635

redeeming the convertible debentures

redeeming the convertible debentures

In December, they will pay off the last of their senior notes. At that point, they can redeem the convertible debentures at 110% of par (which they say they aren't very interested in doing): or starting May 31, 2021 they can redeem them at par; or redeem them at par at the end of their term November 30, 2022.

Or, if the share price goes above $19.04 and it looks as if the debentures might be redeemed, the holders can profitably convert them into common shares.

As long as the convertible debentures exist, the company can't make any Restricted Payments which includes paying dividends, buying back shares, or buying back common shares. On the conference call, they expressed interest in eventually returning some money to shareholders.

Based on all of this, I expect them to accumulate the $100 million they need to buy back the debentures during 2020 and buy back the debentures May 31, 2021 (unless the share price rises above 110% of $19.04 before then in which case they might make a buyback offer that effectively forces conversion). I expect them to declare a dividend as soon as the debentures are eliminated.

This brings us to the magical date of December 20, 2022 when the warrants expire. Is there any realistic chance the share price will be worth $28.16 by then? Depends on your definition of relistic. :) The best chance for the warrants to pay off is a buyout of Yellow Pages now that the balance sheet is clean.

Bullboard Posts

USER FEEDBACK SURVEY ×

Be the voice that helps shape the content on site!

At Stockhouse, we’re committed to delivering content that matters to you. Your insights are key in shaping our strategy. Take a few minutes to share your feedback and help influence what you see on our site!

The Market Online in partnership with Stockhouse