Yellow Media Inc T.YLO

RE: Debt Maturities

[Trabiz]

Hi guys,

First time poster, no time reader.

Just want to say that I have 2000 shares of YLO at avg. price of $4.68.

I think the company will be able to survive but a dividend cut will be needed in the near future.

Based on their 2010 annual report, it seems as though no debt matures until 2013. Is this correct?

The following is the breakdown of their debt per the 2010 annual report.

Year            Amount Due
2011                Nil
2012             295M
2013             505M
2014             297.5M
2015             260M
2016             387.4M
2019-           461.7M
                      ----------
Total           $2206.6M

If the above is correct, the company will not have trouble paying off the debt until 2013.

I don't see how the company will become bankrupt anytime soon.

They should be able to pay off the 2012 maturities with the cash from the sale of trader and have some left over to 2013.

I guess by late next year, the dividend will have to be cut substantially (50% or more) to help pay off those debts.

The debt is ABSOLUTELY managable!
NO fears of bankruptcy at all
IMO, the divvy cut is already priced in.
But, with tader sale and increasing revenues, they just might be able to pay the 2013 debt due without a divvy cut.
For 2011 and some of 2012, no need to cut the divvy.
Howerver, if revenues start to decline, ALL bets are off!
I see stable to slight increase in revenues Q to Q
Interesting that the preferred c's and d's are falling hard while the a's and b's are moderately lower.
I understand completely why analysts are down on this stock. It's a little to risky for an ultra conservative mindset.
The debt with Yellow pages in the U.S was ridiculous. 3:1 ratio in a falling economy was a shorts dream come true.
YLO's debt is closer to 1:1 and is managable. Of course, without the sale of Trader, a divvy cut would have been inevitable.