MNK - Form 10Q (lots of information)

Hello Holders,
To get a better understanding on what Yankee is talking about (Shorters just like to give you the headlines …but never the detail) , take some time to review Pages 16 & 17 of Form 10Q (31 March 2017) lodged by MNK with the SEC.

This is my perspective ( do your own review):
Liabilities $Bn $Bn
Current Liabilities: 31/3/17 31/3/16
Current maturities of long-term debt $ 244.9m $ 271.2m

Long-term debt $ 5,699.9bn $5,880.8bn

Total $5,944.8bn $6,152.0bn

In reference to the above and in context of the additional information provided within the 10Q , I make the following observations.

1. Total Debt Reduction of $207.2m during the above periods
2. Not sure where the reference to $8bn Debt comes from ? The Debt is $5,944bn. If you want to include all payables then lets also put on the other assets and PPE . If you did this ( compare oranges with oranges), then the net asset position is per the 10Q is $5.114bn (page 4)
3. The $244.9m current debt attracts an interest rate of 1.78% (variable)

• Re the current debt due – relevantly the company has $154m Sale proceeds coming in on 31 Jan 2018 ( sale of its Intrathecal Therapy business to Pirama Critical Care.

4. The long term Debt has $300m due in April 2018.

• The remaining long term Debt (i.e $5.399bn is b/w Apr 2020 – April 2025
• In my opinion, management would be currently working on this (I would expect the market to be updated in the next 3 -6 months)

5. $900mn Revolving LOC)

• In conjunction with the term loan refinancing, the existing revolving credit facility of $500.0 million due in March 2019 was replaced with a $900.0 million facility that matures on February 28, 2022
• As of March 31, 2017, the applicable interest rate on outstanding borrowings under the Company's revolving credit facility was approximately 3.40%,
• there were no outstanding borrowings.

6. As of March 31, 2017, the Company continues to be in full compliance with the provisions and covenants associated with its debt agreements.

Other comments:
My final comment is in regards to Page 47 (under investing activities) - it says
“Under our term loan credit agreement, the proceeds from the sale of assets and businesses must be either reinvested into capital expenditures or business development activities within one year of the respective transaction or we are required to make repayments on our term loans “ .

Exciting times ahead for the Blaster ( now I get why the Prof was confidant on the call)

Good weekend to all holders – always DYOR.