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LIN TV Corp. Message Board

  • value_invstr value_invstr Dec 27, 2012 9:43 AM Flag

    New Bank Deal

    is very shareholder friendly. We lowered the interest rate, plus we got great flexibility in eliminating the cash flow sleep. Given our leverage ratios, essentially all free cash flow can now go to shareholders and not to pay down bank debt, was previously 50/50. Also their was mention of paying money out to Comcast or GECC, the bank agreement allows this. I believe ths is new, and therefore indicates to me that they may look to get out of the JV or are at least giving themselves the flexibility to do so.

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    • Looks like we can pay $50m in dividends per year, with that amount growing by the amount of free cash flow we generate as long as leverage stays below 7x. This is the first and needed step to get equity friendly.

      • 1 Reply to value_invstr
      • Thanks for your insight, that is good stuff. I am in all cash right now, waiting on the cliff to settle out. Looks like we have some more downside left in the markets. If we can get a little pullback in TVL I'll get back in. I'm looking for SBGI to pull back also. I still think we have a 4 or 500 point drop in the Dow coming before it's over.
        I've been out of the office for a couple of weeks, I'll get an update on pacing dollars for 1st quarter when I get back. Last I looked it didn't look good but that may change as soon as our bumpkins on the hill get something ironed out.