Post by
bigbear4511 on May 06, 2016 11:04am
$ 94 million available credit
At March 31, 2016, the Corporation had approximately $94 million of available liquidity under our revolving credit facility. Following four consecutive quarters with record COP from our Sodium Chlorate business unit, and the sale of NATO in 2015, Canexus has reduced its debt and leverage by 10% since Q1/15. As previously announced on March 22, 2016, Canexus amended its Credit Agreement with its syndicate of banks. The amendment modifies certain financial leverage covenants relating to the first and second quarters of 2016, which allows ample liquidity through to the anticipated closing of the Transaction. In addition, amendments were made allowing adding back of certain one-time costs to EBITDA, which provides enhanced access to liquidity through to maturity at June 30, 2017. At the ordinary course, the Company has the opportunity to request an amendment and an extension of the facility as provided in the agreement.
With this agreement plus the profits they made this quarter, they have more than enough liquidity to hold out to the merger. If canexus can manage profits like this (16.5 million) on a continualy basis i feel they will be a going concern and there will not be any bankruptcy sale. If Superior can manage numbers similar to these plus another 10 million in synergies per quarter i feel the stock value will only go up.
Comment by
Kherson on May 06, 2016 1:16pm
There is a problem with your assessment of the overall debt reduction of 10%, the overall asset value has plunged by 30% during the same time frame, hence the negative Book Value of the equity component on the balance sheet... Kherson
Comment by
bigbear4511 on May 08, 2016 12:10am
Well if they keep posting profits, their debt will go down and their book value will increase and you won't have an arguement.