RE:RE:RE:RE:RE:RE:the guy looked tiredThe days of juicy offers are over.Now it's do or die.
The strong will get stronger and the weak will be eaten.
Unfortunately LRE is on the menu at the moment.
It won't be long when desperate companies will be a dime
a dozen and offers will be rock bottom.When there's
smoke,the first ones to leave are fine,the rest risk
getting trampled.
The following graph is from MIE's pres pg35
You can see how quickly interest rates shoot up when EBITDA drops.
That $200 mil will save a small fortune in interest
and keep the bankers happy.Not a bad idea at the moment.
| Total Debt/EBITDA | Base Rate | BA Stamping Fees/LIBOR Margin/LOC | Standby Fees |
| ≤1.00:1 | 100bps | 200bps | 50.00bps |
| >1.00 :1 1.50:1 | 125bps | 225bps | 56.25bps |
| ≥1.50 :1 2.00:1 | 150bps | 250bps | 62.50bps |
| ≥2.00:1 2.50:1 | 175bps | 275bps | 68.75bps |
| ≥2.50 :1 3.00:1 | 200bps | 300bps | 75.00bps |
| ≥3.00:1 3.50:1 | 250bps | 350bps | 87.50bps |
| ≥3.50:1 4.00:1 | 300bps | 400bps | 100.0bps |
| ≥4.00:1 | 350bps | 450bps | 112.5bps |