Post by
dowd on Feb 11, 2015 3:01am
LRE Bank debt covenants
They must keep their 12 month trailing ebitda at or below 3 times bank debt. Has anyone tried to calculate this? It is tricky because of lack of information and timing of aquisitions. I tried to guestimate and they missed by a little but I could be wildly off.
Anyways, I think they get a waiver if needed for the march31 period as they could always monetize their hedges just before march 31 to make it over the line.
But no way do they make the Fall bank debt covenants imo. Anyone have an opinion on this issue?
Comment by
veronikagermany on Feb 11, 2015 7:00am
LRE's debt concerns a lot of investors. Stay far from the indebted companies.
Comment by
Shlinker_ on Feb 11, 2015 11:38am
Wow, Sumcan2, excellent analysis I have to say. Its somewhat above me to calculate such metrics this way. Good post. I take it you are a shareholder?
Comment by
Sumcan2 on Feb 11, 2015 1:11pm
Based on the 3rd quarter financial statement, the 3rd quarter interest expence was $7,566,000 , just over $30 mil. I used interest in my calculations and EBITDA does not so the ratio without interest is 2.86 But as you rightfully stated we need to see current data.
Comment by
sapiensunus on Feb 11, 2015 3:13pm
When I do my DD on costs I like to include expenses for Contractual Obligations and Contingencies and Related Parties (see MD&A) to the net debt as there are interest related costs there as well. Good stuff. GWH