RE:RE:RE:RE:RE:RE:RE:Segments of Bbd with big growth potentialHighlighted in yellow.
I think that $350m in interest yearly is doable.
Not nitpicking but even $6B X 6% is only $360M yearly. Not 400M. I think their money will go a longer way if they only put down 35% to 40% downstroke and renue every one of the LTD maturities.
They can get 5.5% in this lending climate. All this dumb Family has to do is start puting 35% down on each maturing JB LT loan. Then they can refinance maturing debt. The only thing they have to watch for is not to give too much security if the lenders wish more than 35% down. Heck even traditional Canadian Chartered Banks financing it will give 5% with 35% to 40%.
As for acting quickly? That's all I've been saying for ages. So has Pablo. This size of debt is a killer.
The best way to really do this is a combo of both. Pay the 1.2B coming at 9.75% off totally right now if they can't refinance it by doing 40% down. They need some financial advice. Firms that have Billions in Revenue annually hire smart money people. This Family hires dumb people. The biggest imbecile is PB.
I hope they are transparent on March 4th. Because I can't stand swindlers.
Time is of essence on the LTD. Somehow I get the feeling that these nuts will back into OKAYNESS even with all comedy of errors.
Jim99999 wrote: Shamhorish, this is nonsense.
What makes you think that no one is borrowing now? Do you have any data to support this idea? Thousands of companies have debt coming due, and must roll it over just like BBD.
This is not something unique to BBD.
BBD has the upper hand? Are you serious? BBD needs the lenders, not the other way around. Lenders with billions of dollars did not get wealthy by being careless or generous. They will always assess the risk, and will ensure that the return is commensurate with the risk.
Lenders do not care about what is good for BBD. They care about what is good for themselves. They wiil charge whatever the market will bear.
Stop kidding yourself. BBD will not get billions in loans at 3-4% without offering substantial collateral. The terms of such loans might prove too restrictive. If BBD re-establishes a low interest secured LOC, I think it wil be in the $500M-$1B range.
Billions in unsecured loans at 3-4% would be great for BBD, but it's not going to happen.
However, BBD does not need that. If they can get their LTD down close to $6B, and their average interest rate close to 6%, they can get their annual interest expense into the $400M range. Not great, but probably manageable. But they have to act quickly. Hopefully we will get a clear picture of their plan on Thursday. Jim
Shamhorish wrote: Jim, after reading post by BBDB859 ABOUT D BART
his way of handling debt, interest etc are much better than what i visioned
paying 30-35% of each long term debt and refinancing the rest at much lower rate is smart
and yes, it is better for a bank or... to charge 7.5 or 5.5% thab charging 3.5% interest
but who is borrowing now!!!
if bbd pays long term debt, lenders will be stuck with billions sitting there making 0%
so, now which is better, to refinance bbd at 3.5 - 4% or get fully paid
beside, i think bbd here got the higher hand
options can be, thake 30% and refinance at lower rate or we go to CCAA
in ccaa, lenders will have the options of converting the amount of loan to bbd.b shares, if they do not accept ccaa. then it is bank rupcty
so bankruptcy, lenders will loose big time
ccaa lenders will still be foreced to take the value in bbd.b shares which is not appealing
take 30% and refinace at 3.5 - 4% is good to lenders, they got 30% of the loan, and placed the other 70% at let us say 4% which is good for both parties
i think bbdb859 presented good senario
will see what managementy will propose in next investores meeting