RE:RE:RE:Valeant to sell assets to reduce debttrivela wrote:
Concordia's debt is well below the $4 billion figure you mention, please check the latest quarterly report. The payment of the so called "purchase consideration" or "earn outs" amounts to several parties that sold assets to Concordia is nearly over - one big payment still in February, afterwards much smaller amounts. Then they can surely focus on bank debt reduction and bring the net debt amount to under $3 billion in the next two years. They just need to stop making acquisitions.
Actually it is slightly more than US$4b than I mentiond as the spot currency on the last q is 1.31 and the current F(x) is 1.213
Their currency swap agreement was in my opionion, executed at the worst possible time for the corporation.
No worries on them making acquistions as they don't have any money to do so. It is unlikely that they even have enough to service their debt or they would have issued forward guidance by now.
Without guidance, no institution will (or can) consider this investable.