Concordia Healthcare Corp. T.CXR.R

Uses of the $350 million?

[KnowledgeSeekr8]

Does anyone know if management would be able to use say $100 million of the borrowed funds to buy back say 20 million of the outstanding shares? Or would these funds have restrictions? Wouldn't that be an amazing use of less than 30% of these borrowed funds. Would leave around 30 million shares outstanding at that point?

[rad10]

Its a nice idea for those of us thrown under a bus by this company - but they have guided a net debt to EBIDTA ratio of 6.4 for 2016.  Therefore the new funds will have to be used to retire the 119 million US$ bridge facility at 9.5% and ensure the Cinven payments are met in full 144 million sterling (February next year I believe).  They have also stated the funds will be used for

[LaticelnExile]

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[rad10]

I am well aware latice!  The only way they can maintain their debt to ebidta ratio is if the funds are used to pay the bridge down.  If not their guidance is yet another example of male bovine fecal material.........................

[Craigbad]

Keep in mind Rad that after Goldman takes there commission on $350 million, the interest rate is actually much higher on what they are actually receiving. The 9% is on face value, but they will likely only receive $315-320 million. 

[LaticelnExile]

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[PROtrading]

Why on earth would they buy worthless shares?   That $350M is already spoken for, at least $200M is dues to Cinven starting with that first payment in December and the deferred 50% payment in February. Plus we have that EXTRA $72M finder's fee that still have not been officially taken off the table.  The company has NOT disclosed whether it was triggered or not. But it's