PNC 2.86% 51.0¢ pioneer credit limited

The company is over leveraged by a long way.There is a good...

  1. 349 Posts.
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    The company is over leveraged by a long way.

    There is a good chance they can't get refinanced on acceptable terms because their leverage is too high.

    To hit the net income forecast management is making, you're relying on interest costs coming down substantially with the refinance.

    This type of business is good but they need to deleverage and from everything I'm seeing, they're doing the opposite. They are already walking a tightrope and there is a high risk they'll fall.
 
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