your "maths" is a wee bit off. No RS for GPT. So tech we are buying them with our stock. They (CSG) will get 74.25 mil of new GPT shares. Currently there are 57.7 mil shares of GPT. There will be 131.95 mil shares approx after the merger.
GPT shareholders = 57.7/132 ~ 44%
CSG shareholders = 74.25/132 ~ 56% of the new co
ok so as of last Qtr NBV was 759 mil/ 41.43 = ~18.32.
And it looks as if this portfolio was priced at about 3.68% prem over its BV. (35/950). This sale represented about 25.8% of their "flight equipment". Now if we apply this same premium over all their planes the adjusted book values are as follows (presale):
@3.5% prem to book: 759mil + prem (129 mil) = 21.43 NBV
@3% prem to book: 759mil + prem(110 mil) = 20.98 NBV
This might actually be a conservative estimation due to the fact that the recent sale was mostly older (10+ years) planes.
well looks like leverage will remain 3-1 to 4-1 but the sale of the portfolio will help bring in 50 mil of pretax annual income on a 1.7 bil acquistion of aircraft, supposedly. :)
might want to look at the price the bonds are trading before buying anymore stock. If bonds are still less than 50 cents on dollar looks like that may be the way to go here.
Exactly. Also something tells me the extra cash flowing to the senior notes was part of the CAD number. How do you explain the 7 cent drop in CAD otherwise Q on Q?
Also what happend to the use of AFFO as a measure of performance?
honestly I would like to know how much above book value they got for the planes. Hopefully its around 50 millon above nbv like reports say. I also wouldn't mind if they decreased leverage to 3 to 1 debt to equity instead of 4 to 1. Or just keep a lot a cash around and wait for opportunistic buys.
While I hope for a buyout, I understand that management loves this ext model and really aren't incentivized to sell the company. I would love a buyout at 20 a share but highly doubt that possibility.