Ray, I see investment income of at least 12.5M and 8M+ annually in expense savings on a 50M investment, no leverage necessary. You think RSO could get that kind of yield/return leveraging up to 100M and loaning it?
If they spent just 50M they could acquire 12,500,000 shares at price of 4. The value of those shares in accordance to book value is 62.5M for a gain of 12.5M in relation to stockholders equity. Now add another 2M for dividends not being paid on the 12.5 million shares if bought before ex div date. That's 14.5M total more in stockholder equity. The pool is reduced by those 12.5M shares to about 116M. $14.5M into the remaining shares results in a 12.5 cent increase in book value plus saves them at least 2M per quarter going forward on the dividend savings. Doubt there will be enough time to get that size of a block thuogh.