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.
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