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Belo Corp. Message Board

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  • belobuster belobuster Jul 14, 2011 4:37 PM Flag

    what to expect from earnings?

    The 6.75% notes are non-callable and mature in May 2013. The 8% notes due Nov 2016 can't be called until Nov 2013. Both these issues are trading at large premiums in the 2ndary market (107 and 110, respectively) making it not cost effective to purchase in the open market. The 7.75% notes (2 tranches - combined $440mm) are due in June and Sept 2027. These are old investment grade notes with no covenants and relatively cheap capital for a 16+ year remaining maturity. But, they do trade at fairly deep discounts (in the 90-92 range) due to the lack of covenants. I guess they could buy-back these old IG notes that are yielding in the high-8% range and then use a new bank deal in 2013 to refi the 2013 maturity. As a shareholder I'd rather they pay to get waivers under the current facility and then use the FCF and cash on the balance sheet to pay a larger dividend and/or repurchase shares at these deep discounted prices.... much better use of capital IMO. But given how conservative (sleepy) this management team and board are, don't bet on this happening anytime soon.

 

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