OTCPK:ARLZQ - Post by User
Comment by
Floridas2000on Oct 08, 2016 3:19pm
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Post# 25325747
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Seeking alpha
RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:RE:Seeking alphakuatolives wrote:
Oh, and one more thing about the deal. Financing for low revenue generating companies is always more expensive than for high ones. This deal also allows ARLZ's EBIDTA to rise to a level that will shave off more % points on their loans when they head to the credit markets. The benefit of this 80M a year in revenue will be immediately felt when they finance... anything.
This is Zack's quote
"Management has indicated that the current credit facilities are a bridge to a more permanent financing situation at some point in the future when the company has significant EBITDA and a leverage ratio that will allow them to receive more favorable financing conditions. "
It appears management does have a plan and are looking to execute it. 12.5% is a good return for Deerfield but in the future Adams should get something better.