Right on the money.Thats one hell of a lot of debt for a company with $90 million total market cap.
Looks like they are borrowing another $20 million. Guess where the next few quarters "earnings" are coming from.
"We are extremely pleased to announce this new credit facility, which substantially improves our financial flexibility, allowing us to further execute on our long-term growth strategy. We now have additional liquidity available .... The new credit facility ****replaces the existing $250.0 million senior secured credit facilities with a new $270.5 million facility****, comprised of a $95.5 million senior secured revolving credit facility and a $175.0 million senior secured term loan B facility.
The new facility includes an accordion loan feature which permits a $75.0 million credit limit extension, should the Company require additional access to capital to support future operations.
AACC..... declared a special one-time cash dividend of $2.45 per share payable July 31, 2007 to shareholders of record July 19, 2007.
On April 24, 2007, the Company announced its plan to recapitalize its balance sheet and return $150 million to shareholders. As previously reported, the Company has agreed to repurchase $75 million of its shares through (1) a modified "Dutch auction" tender offer, which expired at 5 p.m. EDT, on June 12, 2007, and (2) purchases from AAC Quad-C Investors LLC, the Company's largest shareholder, the Chief Executive Officer and the Chief Financial Officer, who collectively own 50.4% of the Company's stock, with these purchases occurring outside and after the tender offer, allowing these three holders to maintain their ratable ownership interests in the Company.
The Company is funding its return of capital to shareholders through its expanded $250 million credit agreement that it announced on June 6, 2007. The expanded credit agreement contains a $150 million term loan used to fund the return of capital to shareholders and a $100 million revolving loan facility that will be used to supplement cash flows available ...
So what you are saying besides the fact the banksters own AACC is this is a $2 stock for 2012, currently @ $3 due to stock price plunger-group manipulation in 2011, headed eventually to $1 in 2013 based upon the fact 1.75 million in cash goes to just the top (5) in salaries not to mention the loan obligations outstanding? Gross A/R and free cash flow have got to have an impact on that just due to the numbers themselves plus an expense reduction in San Antonio?
We entered into a New Credit Agreement with JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders named therein, effective as of *******June 12, 2007 ******, as part of our overall recapitalization plan. Under the terms of the New Credit Agreement, we have obtained a new five year $100 million Revolving Credit Facility and a new six year $150 million Term Loan Facility (together with the Revolving Credit Facility, the “Credit Facilities”). The Credit Facilities bear interest at prime or up to 100 basis points over prime depending upon our liquidity, as defined in the New Credit Agreement. Alternately, at our discretion, we may borrow by entering into one, two, three, six or twelve-month LIBOR contracts at rates between 125 to 225 basis points over the respective LIBOR rates, depending on our liquidity. Our Revolving Credit Facility includes an accordion loan feature that allows us to request a $25.0 million increase as well as sublimits for $10.0 million of letters of credit and for $10.0 million of swingline loans. The New Credit Agreement is secured by a first priority lien on all of our assets. The New Credit Agreement also contains certain covenants and restrictions that we must comply with, which, as of December 31, 2007 were:
Leverage Ratio (as defined) cannot exceed 1.25 to 1.0 at any time on or before December 30, 2008, 1.125 to 1.0 at any time on or after December 31, 2008 and on or before December 30, 2010, or 1.0 to 1.0 at any time thereafter;
Ratio of Consolidated Total Liabilities to Consolidated Tangible Net Worth cannot exceed 3.0 to 1.0 at any time on or before December 30, 2007, 2.5 to 1.0 at any time on or after December 31, 2007 and on or before December 30, 2008, 2.0 to 1.0 at any time on or after December 31, 2008 and on or before December 30, 2009, 1.75 to 1.0 at any time on or after December 31, 2009 and on or before December 30, 2010, or 1.5 to 1.0 at any time thereafter; and
Consolidated Tangible Net Worth must equal or exceed $80.0 million plus 50% of positive consolidated net income for three consecutive fiscal quarters ending December 31, 2007 and for each fiscal year ending thereafter, such amount to be added as of December 31, 2007 and as of the end of each such fiscal year thereafter.
****The New Credit Agreement contains a provision that requires us to repay Excess Cash Flow, as defined, to reduce the indebtedness outstanding under our New Credit Agreement.**** The repayment of our Excess Cash Flow is effective with the issuance of our annual audited consolidated financial statements for fiscal year 2008.
We had $191.3 million principal balance outstanding on our Credit Facilities at December 31, 2007. As described above, the Company has an interest rate swap agreement that hedges a portion of the interest rate expense on the Term Loan Facility.
*******We were not in compliance with one of the covenants of the New Credit Agreement as of December 31, 2007. ***********We subsequently obtained a temporary compliance waiver from JPMorgan Chase Bank, N.A., as administrative agent, and a syndicate of lenders named therein. We, JPMorgan Chase Bank, N.A. and other lenders entered into a First Amendment to Credit Agreement (the “Amendment”), effective March 10, 2008 in respect of the New Credit