I was trying to find the list of current lenders to FRP, cause last I knew BAC was one of them. In fact I think that is why BAC was named as Agent for the whole group. Was also trying to find how many shares BAC got out of the BK, but site I used to use in NY is not there now. I also couldn't find a Maine PUC filing for 2010, but since I have already had my way with FRP, I don't really wanna waste time on it.
there are 26M shares and bank of america has been liquidating his position in the equity. hedge fund guys have been accumulating (marathon is out I believe) and these guys are subject to quarterly reports to their clients. that is they will use their control to extract value at one time or another. that is what my logic says.
that is what I would do if I were them, but then again you
might see things that these guys do not see.
then again, you are just a trader, so your position might change between today and tomorrow...
Heh, I already grossed about 15 bucks a share over the past few months. Got out. Sorry.
BAC received shares for this POS. Guess they sold em eh wot?
The company will begin trading under the ticker symbol FRP and is issuing as many as 37.5 million new shares, according to bankruptcy court documents. Under the reorganization terms, holders of secured debt receive 92 percent of the shares. Unsecured creditors get the remaining 8 percent. FairPoint's secured creditors include Bank of America Corp.
Yes .... They are the agents to the credit agreement. They are not the lenders. They do not own any of the underlying debt.
Either way, like I said before, the only way the lenders have any rights is if EBITDA falls below $200mm.
What a shame you are not shorting it. I guess you can't or are too chicken to put your money where your mouth is. If I believed as stronly as you did I would short it to zero. You are just full of BS.
You bore me. If you think BAC's role as administrator of the DIP and as the primary lender to FRP don't have any impact on the sale of FRP you are number than a hake. I stopped shorting this, as I have stated before. See ya sucker. How's your average price doing? Your predictions for this stock are about as good as gotnomoneymans. One in the same? FRP is still bleeding lines, and if you think the landline business is coming back I have a few newspapers you might be interested in buying. Ta ta you steaming pile of merde, heh.
DIP Credit Agreement
On August 30, 2010, the Debtor-in-Possession Credit Agreement that the Company and FairPoint Logistics, Inc. (“Logistics,” and together with the Company, the “DIP Borrowers”) entered into with certain financial institutions (the “DIP Lenders”) and Bank of America, N.A., as the administrative agent for the DIP Lenders (in such capacity, the “DIP Administrative
BAC is just the agent on the debt. Its an administrative function. They do not own any debt. They have no economic interest. Either way, the lenders of the company have rights against FRP in the scenario that EBITDA falls below $200mm (4.75x total-leverage covenant). Given that EBITDA should be at least $260mm this year and rising to well above $300mm next year after the personnel reduction the covenants won't break anytime soon.
It sounds like you don't understand how this works. Keep shorting it. Knock yourself out. Whatever money you made you will give it right back.
They own the debt, and have certain powers regarding FRPs operation and mismanagement, and BOD. I have made my money shorting FRP, and frankly am getting a big kick out of the suckers like you lining up to buy this POS.
Sorry buddy. Book value is irrelevant. Its all about EBITDA and cash flows. This company is on pace for $270mm of EBITDA for 2011 and is currently trading at 4.3x which is really cheap. Comps trade substantially higher. At 5x EBITDA this is a $13.50 stock. At 6x EBITDA its a $25 stock. These guys should do better when they lay off 20% of the workforce which is happening now.
Accurate EBITA is a key figure looked at by the buyer and seller. However, other figures and beliefs about the future do come into play.
Of course one side may challenge the others figures, ideas and beliefs.
EBITDA - definition of EBITDA - Earnings Before Interest, Taxes, Depreciation and Amortization.
now tell me what the earnings are AFTER the above and including bonuses and other perks like gasoline, cars, travel expense and trips to the country club(business related, of course}
In FRP's case it's all smoke and mirrors IMHO