Converge Technology Solutions Corp T.CTS

Has any analyst

[marsman1]

made a comment re: the company increasing their credit line Vs. a deal for the company?

[preytel]

Are you implying that there is no deal because of the increase?

[marsman1]

No I am not implying that  preyel , I just would like to here what the analysts are thinking. I find it very confusing.

[Mephistopheles3]

This press release is not something analysts would typically comment on one or another.  The accordian was always there, the only actual news that came out was that they exercised the option to have access to it which by itself tells us nothing.  If they announced an intention with that extra credit line, that would be a different thing. So investors are reacting right now to the

[AlwaysLong683]

Excellent point. If the company is close to getting taken out by a suitor, why the need to boost the credit line by $100M.....? One possible scenario: CTS did not receive any acceptable bids on a sale price per share basis, so they may be preparing to continue as a stand-alone company. Wonder when CTS's Special Committee will announce their decision on the Strategic Review....?  Would

[AlwaysLong683]

Here is CTS's press release on the credit facility increase for those who haven't seen it. Key quotes in my opinion: CTS ".....has increased its $500 million global revolving credit facility (the "Global Credit Facility") to $600 million under its accordion feature on its existing credit terms....." "This increase will provide additional capacity to allow the

[mingzhu]

i agree. Now it is less likely to be taken out