Debt Liquidation Will boost Cash flows by $40 m cad Debt Liquidation Implications
For the first three quarters, Dorel paid $30 million US in Finance charges.
That will be about $40 million US for 2021.
With approximately 70% of debt liquidated ( my estimate ) $30 US = $40 million cad in interest costs will be eliminated .
That will boost cash flows and Ebitda commensurately.
That is a significant savings and with cost compression ongoing, and supply chain problems receding ...manufacturing already brought back home..the two remaining division are going to be very attractive to buyers on a debt free basis..
SA says the stub is worth $30 in any sale.
TD likewise
Im buying more at these prices