RE:RE:RE:RE:conversion of debentures, exercise of warrantsSeveral people have said things like:
they are on schedule to pay off the secureds in 3 years or so
How are you figuring this? Yellow Media paid off $154 million in senior secured notes this year, from a total of $800 million. If they keep paying off debt at this rate for 4 more years, they would pay off a total of $770 million over 5 years for a remaining debt of $30 million. OK, that's almost zero, after 4 years not 3.
But Yellow Media's top-line revenue is declining at more than 10% per year. I expect that rate of decline to decrease, but Y will still be a company that's bleeding revenue. I have great trouble believing that they will continue to pay off $154 million of debt per year.
Without a restructuring, I expect them to owe about $200 million on the senior notes at maturity in 4 years. I'm curious what you see that I don't see.