Thanks for the response. Just a few comments. No need to take to the RAD board
****Much/most RAD debt has an escalator with changes to LIBOR ****
Not true. 80% is at fixed rates (source 10-K).
**** Either way, RAD just lost $378 M in its recently reported FY ****
True, which is a loss of $0.43 per share. Current avg. analyst estimates are a loss of $0.15 per share for this FY and a loss of $0.08 for next FY.
**** its current ratio was in a $2 B deficit ****
Not true. RAD's current ratio is 1.7
**** Tells me that MUCH borrowing lies in their future ****
Not true. RAD has been free cash flow positive for the last 2 years and has provided guidance that it will be free cash flow positive for the current FY.
**** and, further, that any upward pressure on interest rates could be a death knell for their survival. ****
I can only comment on the foreseeable future. It's my understanding that the FED could start raising rates as early as late 2013 (Based upon a recent interview that I watched). Based upon the fact that RAD does currently have some variable rate debt, I expect that an increase in rates could have some impact on RAD, but nothing material.