Worst case asset values. The real world is closer to these numbers.
NY $95 million
LA $90 million
Miami $30 million
Chicago $30 million
SF $25 million
PR $20 million
Mega Tv $10 million
Asset values of $300 million. Debt over $410 million. Demonstrated better by the value placed on preferred stock. Equity is worthless. Senior bank holders will most likely not be paid in full.
My friend..I have no use for pumping..I am only interested in the facts and the facts speak for themselves.
Thee is NO DONE refinancing...the credit agreement doesn't even expire in 6-8 Months from now...your idea is preposterous.
refmj. you are the biggest outrageous pumpers in this board, without any clue.
The re-fi deal is done and for the common shareholders nothing will be be left.
This is the only reason for the massive and huge selling to the penny level.
IMHO...they use $ 50 to pay down debt...that makes it $ 250 @ 7.5%...thats $ 18,750
on an annual basis....they should generate $ + 36 M in cash...covers interest cost
by 2 times....Deal done...Next Issue..!!Yes Rual needs to get his girlfriends off the payroll...no more $100K "Descrianry" bonus payments...we can live without a driver.....yes there is plenty to cut.
Unfortunately the credit markets are not that accommodative at the moment. The banks aren't willing to lend up to that high. Several years ago yes, but right now it's iffy. Not saying it won't happen, it's close, really really close.
In the first six months of both 2010 and 2011 they generated $ 18 Million in cash flow to pay interest...IF you used 10% as an interest rate on $ 300M..thats $ 15 M they should be able to finance this at less than 10%...they can reduce the $ 300M and the rate will be less than 10%...deal done.
You are correct in that the preferred is not the issue. It doesn't have a hard maturity, and they don't have to do anything with it. The problem is the bank debt, and how many of the holders are willing to roll and at what interest rate. And I'm telling you, it's really really close. CBS could be a white knight, but unfortunately earnings haven't been good in a long time.
For Gods sakes...what is this tho "old scrooge club"...this is a no brain er....
They have $ 60+ Million in cash....ample cash flow to service $ 250-$ 300 Million in debt at almost any interest cost...they are liquidating nothing..so all that talk is drib drab....meaningless dribble..this pfd stock is less than a decimel point to CBS....the worst that can happen is if they put two dummies on the BOD..which actually might not be a bad idea...in any case this is NOT going to be liquidated so stop all that useless talk...IF I wee CBS I would do one of two things..1) Loan them $ 250 M at 5% which is a lot more than they can get with short term investments right now...this would allow them to generate enough cash over time to purchase the PFD....and maybe buy some more TV stations....there are lots of possibility here and the stock is a steal at $ 1 WAKE UP OUT THERE.
If the company cannot refinnace the senior bank note holders will take control of the company. The note holders will sell the assets in whole or piecemeal. I would call this a liquidation. Raul loses his legacy, his piggy bank, etc.