RE:RE:RE:RE:RE:Everyone knows Managment is trying to get something done..I believe the payment is du in October and they have till end of September to defer half of it to next February. They have ~$145ish million in cash now and have ~$230M of contingent consideration left. If they defer half of Cinven payment, then will need to make $140M this year and $90M to Cinven by February next year. Assuming they generate ~$8M from dividend savings for remaining of year, they would need to generate $77M of cash flows after debt and interest payments to cover the shortfall by next February and NOT draw on their line. The Company is forecasting $217M of EBITDA for the remainder of the year. Subtracting the Interest and Debt payments of $144M, that leaves them with $73M. So looks like if they meet their forecast on the low end, they will need on approx $10M to $20M on their credit line. Given that the covenants on the credit line don't kick in until 30% drawn or $60M, they MIGHT be able to get away with not tripping stuff.
But again, this all assumes things go as they forecasted. Even a SMALL slip, and its not looking good.
I'm really interested in this strategic review. Wonder if it will yield some extra cash flow.
LaticeInExile wrote:
visionaryfool, I am trying to follow your analysis and compare it to my near term cash flows ..
A purchase consideration is due of $210mil to CInven in Q3 of which they can defer half to Feb 2017 (negotiated with CInven in Dec 2015 when I believe they recognized they were going to be cash tight.) ... So this gives them 2 more months to complete the purchase consideration to CInven. Do I have this correct?