Lets’ crunch the numbers; currently win is paying out a12% dividend per share at $8 a share. A partial Share Buy Back program with a modest bank loan estimated rate of 3% they would have an actual savings of 9% on their balance sheet “per year” At that rate the loan would pay for itself in around six years. Then there would be a perpetual savings of 12% a year in the form of new free cash flow and earnings per share for every share that was bought back now. An extra benefit of a share buy back now, If future cash is needed, new shares could be reissued at a profitable higher price then the current share price now and that would create even more profit and a higher share base price for current share holders.
1) they can not get 3% long-term money right now - last offering was 6.375% I believe (that was to pay off existing debt not to hand out to SH)
2) CEO eluded to additional shareholder friendly activity after capex was reduced about 12-15 months ago several times but he stopped talking about it as the paetec deal didn't work out quite as good as hoped
3) they could do it by cutting the divvy like CenturyLink but that went over like a led balloon