RE:RE:RE:RE:RE:RE:BMO tgt=$12.50I agree Beckysboss,
AOCF per share is neutral when accounting for SPB equity raise and CUS share swap, but 15% accretive when accounting for synergies.
If transaction doesn't take place (big if as I see this as a done deal), the equity raise is 9% dilutive to AOCF. However, AOCF payout only moves from 55% to 60% and leverage is reduced by 1/2 turn to 3.3X, meaning they've already achieved their leverage targets so that excess cashflow can go to growth or increasing dividend payout over time.
Either way SPB is a stronger company afterwards.
SPB results were actually better than I expected; EBITDA flat YoY, AOCF up YoY.
It's not all roses going forward with tougher YoY comps for Q4.
Company is doing fine and on track to guidance.
Good Luck