OTCPK:CUUHF - Post by User
Comment by
mingzhuon Jun 09, 2020 11:04pm
241 Views
Post# 31131680
RE:RE:RE:RE:possible catalysts
RE:RE:RE:RE:possible catalystsindeed debt/epitda ratio is high. here is the TD comments:
"SOX's credit agreement leverage ratio (debt to EBITDA) was 4.57x at quarterend vs. 2.65x at Q4/19 and the covenant ceiling of 5.1x (covenant reverts to a 4.25x ceiling in Q2/20). SOX collected a $22.0mm settlement in respect of a project dispute in late-Q1/20, which the company was unable to apply to longterm debt reduction before quarter-end (it would have lowered SOX's leverage ratio by ~1x). Even still, SOX's leverage ratio would have been up q/q. Meanwhile, based on our forecasts, we see risks related to SOX remaining compliant with existing leverage covenants over coming quarters (covenant relief from lenders, which was obtained earlier this year, may be required again, in our view"
That is 4.57-1=3.47 compared to 5.1. no problem here. i think leaders will be flexible when companies are facing the pandemic.