RE:RE:RE:Bought Deal--something in the water todayMaybe TD is one of the Lenders of the Sintrom deal and that's why they are here. Must say I did not realise how much they paid on a NET sales basis for Sintrom. Appears to be at least 4 1/2 times annual NET sales as opposed to respective 2 1/2 times GROSS.
Be interesting what they do with the proceeds as they seems to be in position to cover current loan amounts due (at $4MM per qtr) +mthly interest at prime+300bp.
I always feel where there is relatively high proportion of interest added back in to EBITDA and adjEBITDA a coy distorts these EBITDA amounts upwards, and thus favorably impacts the related EBITDA to sp ratios. Loan interest is a real cash cost of doing business and I prefer to take it out. However doing this the sp multiple is still only about 11,quite low for what we trust will be a high frowth rate coy.
GL
ps this one does not have the consistent high daily volumes or the immense hype for the likes of PHM and so the brokers have less control over its price action, hence the relatively poor price performance both before and after the Bought deal announcement.