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.

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Yellow Pages Ltd

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Comment by bradford86on Nov 28, 2013 11:04am

223 Views

Post# 21949871

RE:RE:what would a refinancing look like?

Well, let's take a look at your list of comparables and see where the net debt/ebitda stacks up, remembering that ypg's net debt/ebitda is around 1.3x and rembering that they are doing above par debt repurchases. https://www.ypg.com/images/ckeditor/files/00qscguk/Q3_2013_FactSheet_v5.pdf

Also, not only would the cost of paying the penalty be high, add to it the placement costs of new debt AND the refi'd rate would still be high, likely in the 7%-8% range depending on new covenants. By example Air Canada the often toughted recapitalized success story refied their 1st Lien secured debt at 7.625% in October (rated B+/B2) . This is hard asset secured debt of a growing and competive business. Postmedia debt trades at a 5 yr yield in the 7.875% range (rated B+/Ba3).
Anyone thinking they can refi under 6% is out to lunch. Quebecor (B+/BH/B2) trades at 5.63%, Iron Mountain at 5.63% (BB-/Ba1).

Air Canada's Caa1 corporate family rating is primarily driven by its weak key credit metrics, including Moody's expectation that the company's adjusted leverage (Debt/ EBITDA) will remain around 8x through 2013. https://www.moodys.com/research/Moodys-Assigns-B2-Rating-to-Air-Canada-Debt-Positive-Outlook--PR_274392

Postmedia:
https://research.canaccordgenuity.com/_layouts/researchnoteviewer.aspx?pubid=98029

Net debt at the end of the quarter stood at $446.1 million. This represented 3.4x LTM

EBITDA, which is an increase from 3.2x at the end of Q3. F

Quebecor
Moody's expects QMI's consolidated Debt/EBITDA to be maintained in the low-4x/high-3x range (as adjusted by Moody's; March 31, 2013's measure was 4.0x).
https://www.moodys.com/research/Moodys-rates-Quebecor-Medias-sr-sec-term-loan-B1--PR_278437

Iron Mountain:
These debt transactions are leverage-neutral and Moody's expects total debt / EBITDA to remain near 5x until resolution on the proposed REIT conversion is attained. https://www.moodys.com/research/Moodys-rates-Iron-Mountains-sr-unsec-notes-Ba1-affirms-Ba3--PR_279578

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