RE: RE: CIBC cuts YLO to 0These were my earlier comments, re-posted since they get buried in the stream of bashing.
Our well respected mainstream broker say this:
In essence, the lenders forced the company to focus all efforts onthe balance sheet in order to amend [Yellow Media's] credit facilityexpiring on February 2013," said analyst Robert Bek.
Hmmm... @June 30, 2011 total draw on the 1 billion
credit facility was 636 million.
Asannounced yesterday, 500 million is to be paid off from trader cash.That leaves 136 million. 30 million, at least, is saved in annual
interestcharges. 325 million is saved by the Aug/Sept dividend cut.
Howdoes spending 100 million next year, when no other debt matures, amountto focussing all efforts on the balance sheet. Yep, series A preferredretractions loom in Dec. However, can, if it needs to, convert thoseto commons in a worst case situation.
This is analysis Robert Bek??