United Protection Security Group Inc V.UZZ

Increase in Loan, Decrease in Rate

[theinvestor22]

Today's news release means the lender has confidence in UZZ's improving financials.  The decreased rate will save UZZ some money.  Let's hope that any growth resulting from the increased loan will be immediately accretive.

 

I would like to see UZZ eventually reduce their debt but, increased earnings in the short run would be good.

[theinvestor22]

By the way, as per note 12 of the annual financials, the original interest rate on this loan was the greater of 7% or 2.25% above the U.S. prime rate.  I think the current U.S. prime rate is 3.25%.

[liquidcool]

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[TheRock07]

The lower rate will increase margins and larger loan acvcess will permit the next acquisition to be made............which, I think, will not be far away.   At some point, the value here will become reflected in the share price or a takeover.