"Personally, I think this management is kicking some you know what. They have pulled this company out of a deep hole and may just make this a highly profitable company for the long-term. That is why I am loaded with stock (mostly XTXI."
Indeed, we may fail to give the company credit for just how much they have done since they found themselves in trouble. It's really been a great deal of positive work in a short period of time. That's creative management. We should expect more of the same in the nature of growth. The future looks good.
This is a link to a longer version of the article from Bloomberg that I got off their site. It lists XTEX as an unrated company looking to sell debt.
Where did you see that Bloomberg rated the notes "Investment Grade"? You posted a link to a Bloomberg article on XTEX selling notes in a previous thread, but I did not see where Bloomberg called XTEX "Investment Grade"? As a matter of fact, that article lists XTEX as "Not Rated", as opposed to "Investment Grade" or "High Yield". Thanks.
BTW, if Crosstex is going to be paying 9+% interest on these notes, then Lisa is wrong that they will not sell out in a hurry...if to no one else people on fixed incomes, because Bloomberg rated the notes as "Investment Grade".
Ross, Yes. The report is a paid report so I cannot cut and paste. Key takeaways are that they ( Morgan Keegan) see this as an over-all positive move. Bank debt removed, therefore should improve financial flexibility. Their original dividend forecast was Q4:10 and they believe that it could be moved up to Q2:10. Assuming a 7.5x- 9.0X multiple 2010E EBITDA will indicate a $11-$15 value for XTEX. Everything is based on assumptions using 9% interest because no details were given as to interest rate or premium/discount price.
I think you are right about stocks pulling back. However, Bloomberg says that the high yield bond market will take off. I am not worried one iota about XTEX selling all these notes if they are going to pay 9% or even 7 or 8%. People are freaked out over not knowing what the equities markets are going to do...well its pretty certain that the recession is not going to a V recovery but rather a W. Thus people are going to buy these bonds because they know their money will be relatively safe and it will provide income to those living on a fixed income.
For those who have written they are not sure that all the notes will sale, I point them to the financial news that BA/Merrill is chomping at the bit to get their hands on some, maybe a lot, along with a lot of other fat investors. You can bet Blackstone knew their would be a market for these notes. The only question I have is if the interest is 9% what does that do to the predictions of a .25/qtr dividend? Improve or worsen the chances?