dumped and out, page-23

melua
Posted: 21/05/09 20:39
Post #: 4081186
Price at time of posting: 7.5c
In Reply to msg: 4081170
IP: 58.106.xxx.xxx
Sentiment: LT Buy
Disclosure: No Stock Held
Views: 230


Why not? Their interest expense will drop by approximately $110M per annum. Their other assets are all EBITDA positive.
Maybe not 10c per annum but 7c ($182M) is very realistic. That would be a 14% yield on a 50c stock.

Melua

Would the interest payments not be reduced on the full sale price? If a price of $2.7bn is achievd this would give a saving of approx $110m on corporate debt but also a saving of approx $130m on asset level debt.