RE:RE:Banks & InstitutionsHi Flamingo. You got it right.
The Dec. 2024 Bond is nearly paid. We'll probably pay the 2025 off in either the end of 2023 or mid 2024. So ya your right. They'll clear runway till 2026 by the end 2024. This is great news for those sceptical of the LT Debt.
flamingogold wrote: 859... I saw the release last night right after the bell but didn't bother posting on it since it was done automatically by stockhouse's own bot for everyone to see.
Let's remember that BBD has cleared the runway to 2025 on debt so they are unaffected by the fiscal tightening going on currently. So, if your estimates are even close, their debt level 2025 will be manageable even with higher rates when that time comes. They have been extremely fiscally responsible by attacking the debt before the big rate increases began earlier this Spring. A stroke of good fortune but more so prudent, smart business leadership. After all, they didn't pay a divident as some have been floating around.
BBDB859 wrote: Thanks for RBC paragraph Truth. I wonder what the whole article says, if someone could print it??
I don't think people in general are realizing what is happening here.
I'll start with FCF
-2022 we'll easily have $6.8B in Revs. with close to $1B FCF
-2023 we'll have $7.8B in Revs.with $1.5B in FCF
Just judging from the above Revs in 2023 and Q3/23 margins, we'll be paying off close to $1B in LTD in 2023 and we'll be down to $5.1B in LTD..
Looking at their 2025 plan for $500M of +FCF, $7.5B in Revs, tells us that they will be way ahead on all their metrics. In fact they will reach the 2025 metrics in 2023
It doesn't take a Rocket scientist to figure that out.
Everybody here on the board missed the annoucement yesterday bellow here about them byuing back another $100M of Bonds of LTD by Dec/2022. Why are all these things happening? Because they have a lot money sitting on the balance sheet that they want to make sure goes on the LTD. That brings LTD down from $6.2B to $$6.1B. They just dropped $200M on LTD in a few of months in Q3/22. They're well on their way to reducing it to $5.1B in 2023. These are all real numbers. The money keeps coming with every Quarter, their spending cycle is ending, their Margins are getting stronger, and they are placing the leftover cash, all on the LTD.
When Pearson opens in 2024, they'll blow the doors out of Revs & +FCF. They'll be putting all that FCF on LTD in 2024, and they'll bring LTD down by the end of 2024 to $4.1B. With cash on hand even of I say close to $1.3B.
By 2025 management will be down easily to $3.5B LTD and NET Debt down to $2.5B. That's why banks and Institutions aren't aware of what's happening yet. They are lagging behind the Revs, +FCF, & LTD reduction. They'll start to catch up in Q1/23 when they Bomber throws another $500M on LTD. But before that we still have Q4/22 which they'll even throw another $300M on LTD.
So this is what is going folks.
Enjoy your weekend.