TSX:STB.DB.A - Post by User
Post by
slimjim11on Jan 18, 2016 11:31am
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Post# 24468802
Leased busses increment value to shareholders
Leased busses increment value to shareholdersLeased busses over the six year period accrete incremental value to shareholders. The residual six to seven years of the busses life earns revenue from a below-market valuation of the bus at termination of lease. Whether these leased busses are for new growth, or replace existing busses, the finance rate is 200 to 400 bps below the cost of debt. An off balance sheet lease, accreting value to shareholders, is a cause for comfort, not for concern.