BLACKROCK Municipal Income TRUST V.BFK.P

Primary Symbol: BFK

BlackRock Municipal Income Trust (the Fund) is a diversified closed-end management investment company. The Fund's investment objective is to provide current income exempt from federal income taxes. Under normal market conditions, the Fund invests at least 80% of its managed assets in investments the income from which is exempt from federal income tax (except that the interest may be subject to the alternative minimum tax). The Fund may invest directly in securities or synthetically through the use of derivatives. The Fund's investment policies provide that it invests at least 80% of its total assets in investment grade quality municipal obligations issued by or on behalf of states, territories and possessions of the United States and their political subdivisions, agencies or instrumentalities, each of which pays interest that, in the opinion of bond counsel to the issuer, is excludable from gross income for federal income tax purposes. Its investment adviser is BlackRock Advisors, LLC.

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BLACKROCK Municipal Income TRUST > It will take few quarters to see benefit of redecan and zena

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Comment by Zaybureon Jul 30, 2021 3:04pm

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Post# 33633079

RE:RE:RE:RE:RE:RE:It will take few quarters to see benefit of redecan and zena

Keeler wrote: Zaybure - (7/30/2021 1:09:17 PM)
RE:RE:RE:RE:It will take few quarters to see benefit of redecan and zena
That was cheap, price-wise,but another metric which can't be ignored is the debt. At the time of the acquisition, Z's debt was of the order of 60M CAD. And Hexo's free cash flow was -40M prior to the M&A. So even if Z's quarterly performance is around 20M, Hexo is going to lose ground. Perhaps REDECAN can help but their numbers will only appear in the books in the next quarter.

Not sure where you get Zena's debt of $60 million.
Zena's March 31 financials attements as found on Sedar, show Current liabilities of approx. $84 million and long term of about $41 million.
Call it what you want - but short or long term, liaibilities or debt - the total that Zena owed at March 31 was $125 million.

Zena's Dec 31 year end financials showed Interest Expense of $23.8 million. Where does Hexo get $23.8 million CASH just to pay the interest charges on Zena's debt, along with their own, 48N and Redecans.

It doesn't come from additonal GROSS Sales - it has to come from either Profit - which Hexo is years away from (if ever) or additonal financing to re-fill the bank account. Unless of course - Hexo starts selling off uselss assets like the $75 million quonset in Colorado and the shuttered 48North operation - which, after paying $50 million for, should fetch under $10 million.