Did you even READ the SEC filing and the earlier letter to the Board that it includes?
Davis appears to have systematically violated securities laws while controlling over 30% of the company's shares through both his own holding and through the Rudolph Steiner Foundation (another 13% ownership).
These are egregious violations of securities law that point to a completely ineffective board and incompetent legal counsel.
So... based on the current financial performance of the company and the outlook for its upcoming financial performance, what price should the stock trade at?
What is the basis for your opinion?
Daily pull backs from the highs....
Obvious accumulation taking place.
Personally, I am full up position size wise.
By $9 I will have to start shaving back my position....a good place to get to.
The Franchise Industry Association's "Franchisor of the Year" for 2015 just agreed to take on the order of 90 stores.
it will be very interesting to see how much they get from these stores, and that will have a big impact on valuation.
We closed at $6.03 today.
The day's trading pattern was similar to that of recent days, except that there
was a second "runnup" at the end of the day before a last minute selloff that left
the price up nicely for the day yet well off the day's highest levels.
OK, the bond offering was "upsized" to $1 billion from the initial expectation of $500 million.
The company issued $600 million of 10-year bonds at 4.875% as well as
$400 million of 5-year bonds at 4.125%.
This will allow them to repay virtually all of the early 2017 maturity, assuming they still use
the term loan that was previously anticipated.
OK, today was interest rate fears on top of bad retailers.
The "Bad Retailer of the Day" was Target today.
One of the concerns that I have is that although EZPW is not guaranteeing the GF debt, there is a cross default provision from that debt to the converts.
My concern is that (substantially) all of the debt subject to those terms needs to be repaid/refinanced at (or before) closing in order to get EZPW "off the hook."
I can see that being a bit of a problem for a buyer.
if you go back to the recent call's transcript, they seemed to indicate that the think
a relatively short period of time may be needed to announce a sale. My guess is
that they announce a sale by the time June quarter earnings are out in early August.
Retail companies have posted HORRIBLE earnings.
it includes Macy's, Nordstrom, Target today, all last week and this there has been another
retail earnings disaster every day. So we are selling off a bit after a pretty darn strong run to the upside
culminating ni a 52-week high yesterday for the first time in AGES.
Unusually, it has not yet "closed," meaning the deals terms have not been finalized. It looks like today.
They have added a 5-year tranche to the offering, however, indicating that
demand was strong then expected.
The price "talk" is 4.25% for the 5-year and 5% for the 10-year.
That would be a "spread" on the 10-year of about 320bp over the 10-year US Treeasury.
The rate probably will be higher, since they issued 10-year debt and that was issued as 3-year debt. Also, the company's credit rating is lower now than when that was issued.
The cash won't have any interest rate.
I can provide the coupon on the new bond tomorrow.
Vereit announced a refinancing of its $1.3 billion bond maturity coming due in February.
The company is issuing $500 million of 10-year bonds today.
They say that in conjunction with a "Term Loan A" and cash on hand, the bond maturity
will be covered.
This is contrary to my expectation that they would wait until later in the year to issue a new bond,
hoping to have reached IG ratings by then.
That is all