Viemed Healthcare Inc VMD

No debt = suboptimal capital structure

[lscfa]

Still wondering why they repaid their outstanding debt with a low fixed 4.68% interest rate.  Was it just to clear the slate so they can start fresh with new credit facility with a new bank? Let's get a debt finanaced acquistion going to increase return on equity.

[LongTerm3]

Maybe the banks who are willing to lend Viemed 90 million didn't want 1$ of debt to be before them? That could be a reason. They want to be in first position. That would mak sense with the low fixed rate you mentioned. It seems to me that the two M & A guys they hired seven months ago have to be working on something. Management seems to be talking more about making a deal than ever before

[JackLambert]

There's wisdom in both your comments.   Recall before Covid the Royal Bank gave them an upside target of over $20.   the right deal with the right debt leverage and we're off to the races!!

[westcoastlogger]

New credit facility with a new bank you say?? Maybe the deal they're working on just became a lot bigger. VA or large aquisition?? I bet we find out in the not too distant future.

[JackLambert]

Agree.  One thing these guys are very good at is timing their plays.  Unlike Bestobe - who I hear has been missing the hole by a couple of inches.   You didn't hear that from me.  

[westcoastlogger]

Someone asked Hoyt on the CC about how things were going with the VA (Cooper?)and he seemed to indicate that there were some new considerations with the file being taken on over and above what is already there for them.