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Multiband Anonim ┼×irket Message Board

  • notgonnahappen1940 notgonnahappen1940 Jan 14, 2013 3:19 PM Flag

    MBND is paying Over 10% Interest rates

    The loan is secured by the assets of the former DTHC operating entities and has an interest rate of 10.25%. The revised loan can be prepaid by the Company at anytime without penalty.

    Uhh, That means investing in MBND equity is pretty risky, sketchy.

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    • Just a stop gap measure until they can get a larger credit facility in place...which I would expect to happen sometime this quarter. That is why they put the no penalty prepayment provision in.

      Investing in MBND equity near $2 does not seem too risky to me. They have guaranteed revenue coming in from DIRECTV every quarter and the MDU and EE&C segments are growing nicely at 20%+. Only 8 times forward earnings (probably closer to 4 or 5 times earnings if they capitalize the leases) and barely above book value.

      Sentiment: Strong Buy

      • 1 Reply to buckeye8810
      • Hopefully they do complete the credit facility and with reasonable terms.....the concern is that if you listen to the last 3 or 4 cc's Mandel specifically says that they are in negotiations and hope to announce the agreement soon. A substantive announcement would probably be worth a 5-10% upward stock price move especially if it involves significant cost savings (i.e. lower interest rate)..