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Exide Technologies Message Board

  • sulhaj sulhaj Apr 6, 2013 3:08 PM Flag

    why would exide retains lazard to advise on financing options

    why would exide retains lazard to advise on financing options if they have the money to pay for the debt due on Sep 2013. please help with your answer

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    • They actually never stated in the press release that Lazard was specifically hired to advise on financing options. They only mentioned that Lazard was hired to find ways to maximize value. Lazard is particularly strong in M&A (more so than in capital markets). As an adviser, they could be tasked with working on a number of alternatives:

      - exploration of a possible sale of the entire company or specific assets
      - longer-term financing options to replace the maturing convert
      - refinancing existing senior notes, though that is less likely given the existing covenants (would require a waiver to retire if using anything other than proceeds from an equity offering)

      The company indicated that there is $230mm of available liquidity including the ABL, so there is ample liquidity to redeem the converts and there could be more assuming the company continues to generate positive free cash flow over the next two quarters prior to the converts maturity.

      • 2 Replies to cdti17
      • you are wrong - this is from the pr "Lazard has been retained to advise the company on financing alternatives to maximize the value of the company for all stakeholders" - so its all about financing here otherwise they would have stated "to advise on strategic options". So there won't be any M&A here. Interest payments are killing the company and the maturing debt seriously drains the cash position so they will try to restructure the debt with the help of Lazard - would expect a debt for equity swap on the maturing debt and another partly equity offer for the 2018 debt.

      • So what's your opinion for this company,,, Buy more on Monday, Sell on Monday,,, Or hold !!!!

    • They are playing the company, the target is get Money .

 
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