RE: CIBC cuts YLO to 0I'm going to pick on just one item here:
In essence, the lenders forced the company to focus all efforts on the balance sheet in order to amend [Yellow Media's] credit facility expiring on February 2013," said analyst Robert Bek.
Hmmm... @June 30, 2011 total draw on the 1 billion credit facility was 636 million.
As announced yesterday, 500 million is to be paid off from trader cash. That leaves 136 million. 30 million, at least, is saved in annual interest charges. 325 million is saved by the Aug/Sept dividend cut.
How does spending 100 million next year, when no other debt matures, amount to focussing all efforts on the balance sheet. Yep, series A preferred retractions loom in Dec. However, can, if it needs to, convert those to commons in a worst case situation.
This is analysis Robert Bek??