RE:RE:RE:RE:Apollo buys Diamond ResortsThe only way I see a deal consumating here, would be if Apollo had the ability to retire all of CXR's expensive debt and layer debt back on at reduced rates. They could instantly increase the free cashflow by doing so. Q2 should be a good quarter operationally in any case. They will likely have to reduce the annual revenue projections due tothe FX, but the effect on profit should not be reduced by as much as their costs are still paid in GBP's. So even though revenue will take a haircut, profit will be reduced by a fraction of that % wise. We can also expect the USD denomiated debt to go down as they will have an unrealized gain on the GBP denominated debt balance once they translate everything into USD for reporting purposes.
visionaryfool wrote: Yeah agreed. They have different deal teams working on different sectors.
I think if the Brexit vote had gone Bremain, we would've seen something by now. There is just too much negativity building. Honestly, I just want the special committee to announce that it has ended... even if its nothing material. The uncertainty has really hurt the stock. After Q1 earnings, CXR built a nice momentum going up and then the BO BS started again... and it fell.
Hopefully they have a few $billions still uncommitted haha :D
cashflow98 wrote: Not sure I completely agree. As of March 31, 2016, Apollo had total
assets under management of approximately $173 billion. Apollo has the capability, just do not think they will get CXR for the price they want to pay. Time will tell. Q2 is over tomorrow and AMCO is producing as expected. Day by day CXR is building...Rome was not built in one day. GLTA.
visionaryfool wrote:
You JUST beat me to the post. Guess they had a few options.. and CXR isn't one of them anymore.