Port Wentworth refinery: $150 million
1/3 ownership in LSR refinery: $33 million
Santos Imperial 50% ownership: $25 million
Wholesome Sweeteners 50% stake: $100 million
Natural Sweet Ventures: $8 million
Sugarland, Texas Headquarters’ real estate :$5 million
Sugar inventory: $79 million.
"The Credit Agreement limits the Company’s ability to pay dividends or repurchase stock if availability, after adjustment on a pro forma basis for such transaction, is less than $30 million." This looks like a pretty good indicator of where IPSU presently stands. That tells me they have $10 mil. of availability left. Wholesome Sweetners will be sold next if they can manage the agreement details.
So if you are correct that the credit line may be reduced further due to the sale then that would certainly tighten up the credit, at the same time wouldn't it also mean that IPSU would still have access to the 5.5 million in proceeds.
"The company indicated that borrowings under its revolving credit agreement totaled $81.5 million at fiscal year end September 30, 2011, resulting in available undrawn borrowing capacity of $44.0 million subject to the terms of the credit agreement." So with the sale of Santos occurring in Oct. the capacity should be reduced even further. I believe the last $20 mil. is only available if preceding 12 month EBITDA is positive.
The news release said the sale closed in October;
"The company also announced that in October, it sold its 50% joint venture interest in Comercializadora Santos Imperial, S. de R.L. de C.V. to Ingenios Santos, its partner in the joint venture for $5.5 million in cash."
So I would assume that the proceeds would not be reflected in the last quarter. The drop in credit that you mentioned was 9.5 million minus the 2.7 million which would leave 6.8. Could that reduction in available credit then be the value the creditor had on the Santos assets.
Did you notice borrowing capacity was reduced from 53.5 mil. to 44 mil.? My question is whether this is before or after the Santos sale. If before expect the borrowing capacity to be reduced by the Santos sale.
No they have not but IPSU did state in the recent press release that the outstanding credit balance at the end of the 4th quarter was 81.5million, so subtract the balance at the end of the 3rd which was 78.8 and you come up with a difference of 2.7 million. Divide 2.7 by the number of outstanding shares, 12.24 mil, and you come up with a projected loss of 22 cents BEFORE any items.
The debt numbers for the fourth quarter are at the end of the first paragraph;