RE:RE:RE:RE:RE:RE:If you believe Concordia share price will recover The Cinven earnout is $144 GBP which at the time of PR traded significantly higher, the maximum payout now is approximately $190-$195M dependant on minor currency fluctuations.
They currently have $145M cash + $59M on their revolver + free cash flow of $50M/quarter meaning that at the end of September total liquidity =$254M. They can pay the earnout if they wish.
Alternatively if the Co does not want to draw on the revolver:
Using the high end of the currency exchange of $195/2 = $95.5M.
145M cash + Q3 $50M cash inflow = $200M - 95.5M = $100M cash remaining.
Interest beginning on November and accruing until Feb 2017 on $95.5M = < $4M. Total payout in Feb to Cinven = $100M.
End of Q4 = +$50M in cash + $100M end of Q3 cash balance = $150M end of Q4 cash balance.
$150M-$100M Civen payout = Q1 cash position of $50M and 0 drawn on revolver.
End of Q4 = +$50M cash, net debt position $3.5B - $200M-$50M = $3.25B.
Sorry I called you a child - that was an insult to children who can do simple math.
heavyvolume wrote:
Please stop the childish personal attacks. It's a little sad you need to be reducing the quality of discussions and making yourself look bad in public.
https://www.prnewswire.com/news-releases/concordia-healthcare-announces-launch-of-first-pipeline-product-and-positive-amendment-to-earn-out-terms-of-amco-agreement-552995211.html
"Concordia also announced today that it has entered into an amendment to the agreement for the sale and purchase of AMCo between the Company, Cinven1, and certain other sellers, pursuant to which the parties have agreed to provide Concordia with the option, which can be exercised by Concordia in whole but not in part prior to September 30, 2016, to defer the payment of one half of the earn-out payment owing to the sellers to February 1, 2017, with such deferred amount, if the option is exercised by Concordia, to accrue interest daily at a rate of eight per cent per annum on the basis of a 365-day year from (and including) November 1, 2016 to (and including) February 1, 2017."
And where do you get the $190M when the maximum earnout as per law firm who assisted with the sale states a maximum earnout $220M?
With only $145M of cash as you admit, if I was managing such a large company with this little wiggle room, I would be worried with the decreased sales seen, increase competition from generics and increasing public scrutiny.
And since you appear to know so much, what happens if the earouts payments can be made by Feb 2017, that's only in 5 months!
And sorry to be slightly negative but the surprise last month wasn't very positive was it? If you try to focus on facts and less on attacks, you might be able to be more convincing?