RE:RE:RE:$ 94 million available creditbigbear4511 wrote: Kherson wrote: bigbear4511 wrote:
At March 31, 2016, the Corporation had approximately $94 million of available liquidity under our revolving credit facility. Following four consecutive quarters with record COP from our Sodium Chlorate business unit, and the sale of NATO in 2015, Canexus has reduced its debt and leverage by 10% since Q1/15. As previously announced on March 22, 2016, Canexus amended its Credit Agreement with its syndicate of banks. The amendment modifies certain financial leverage covenants relating to the first and second quarters of 2016, which allows ample liquidity through to the anticipated closing of the Transaction. In addition, amendments were made allowing adding back of certain one-time costs to EBITDA, which provides enhanced access to liquidity through to maturity at June 30, 2017. At the ordinary course, the Company has the opportunity to request an amendment and an extension of the facility as provided in the agreement.
With this agreement plus the profits they made this quarter, they have more than enough liquidity to hold out to the merger. If canexus can manage profits like this (16.5 million) on a continualy basis i feel they will be a going concern and there will not be any bankruptcy sale. If Superior can manage numbers similar to these plus another 10 million in synergies per quarter i feel the stock value will only go up.
There is a problem with your assessment of the overall debt reduction of 10%, the overall asset value has plunged by 30% during the same time frame, hence the negative Book Value of the equity component on the balance sheet... Kherson
Well if they keep posting profits, their debt will go down and their book value will increase and you won't have an arguement.
I agree Bigbear! But if the proposed merger fails, which I believe that both companies are now telegraphing to the Market that it will, then the share price will begin to mirror the actual BV. Anyone buying Canexus now or holding it should be attuned to the fact that the merger may not occur, regardless of my opinion!
Keep in mind that the FTC had rejected the regulatory requirements in the original merger agreement almost two months ago. We know that the FTC has not endorsed any new proposals since then, which we know a few must have been submitted.
The chances of a new successful merger proposal to the FTC, which must be financially viable for Superior yet pass the regulatory requirements, is getting less and less.
On a different note, hopefully Doug and the gang's $6 million in Change of Control payments just went out the window! If you look at the $6 million C.C. payment and compared it to the last quarterly dividend paid by Canexus, $6 million would have funded almost a year's worth of those dividends!
Kherson