RE:RE:Passing through $5…geezer21 wrote:
When you can reduce debt that is costing you 6 to 9 % it is silly to want a dividend paying 1 to 3 %.
While that is true, I think the dividend rate will be higher than that.
Let' s say it closes at $5.00 (Divs are shown per month)
.01 = 2.4%
.015 = 3.6%
.02 = 4.8%
.025 = 6%
.03 = 7.2%
.035 = 8.4%
.04 = 9.6%
I think that if announce we would see 2-3 cents/month 6-9 quarterly. I would be fine with getting paid 4.8% over the year along with the bump in share price that will likely come from the announcement while still reducing debt significantly.
2 cent div would cost about 34.6 million per year, Free Cash Flow is likely above 80 million this coming quarter, the cost of servicing the debt was 15.98 million and comes before the FCF is calculated... so all other Free Cash flow can reduce our 207 million in debt which reduces our debt servicing costs and all would be fine. Instead of paying off our debt in 2-3 years, with a mild dividend we would still pay off all the debt in 3-5 years.
(All my numbers are based on last statement)