i enjoy your posts as you know this company,joel but you are wrong....stock not going to a dollar and even if it does, so what..
it is worthless. the bank debt is worth 100 cents as evidenced by the reluctance of the banks to sell for less than 90.
here is my analysis: yellow canada is worth 800 million debt and stock and is half dex' size and does 800 million in sales.
dxm is worth 2200 debt and stock and does 1800 million sales ...overvalued
in a year will repay 300 million so will be worth 1900 stock and debt and sales of 1700
so, for now and the next year stock worthless
i own the sub bonds....
with 700000 shares traded lower the othher day, there will be no restructuring news tomorrow
would have been nice..............
the market cap is low because the stock has no value.
the bank debt is worth 100% so why should the banks have sold for much less
the question is......what will the $300 million in
sub'd bonds convert into
i hope for $150 million in 8% bonds and $80 million in stock
which one day may rise to $150 million when yellow canada or
ATT buys ir.
they will file eleven if the banks dono
lets hope they do!
and reduce their interest rate
bill b is right and he is wrong. first, dex owes more than 2.4 billion, 90% to banks and hedge funds that have
purchased the bank debt. second it pays about an average of 10% annual interest on the bank debt (three tranches) twice what a stable borrower would be paying, and
12% on the almost $300 million subordinated bonds (the ones that went from $400 to $700 to $400 last year).
which rarely trade.
why pay such a high interest rate? because that's what the agreements demand!
in two years, when the loans come due, either the banks will extend the due date and lower the interest rates
and dex can apply the $100 million saving to pay creditors OR offer convertible notes and/or shares to the creditors.
first of all, their debt covenants do not allow them to repurchase the subordinated bon ds without senior creditor approval, so thats not going to happen this year.
second, during the next year and a half, they will repurchase $500 million in senior debts, saving $50 million in
annual interest, making up for lower revenue
third, yellow is half the size of dex and its total cap is.........half the size.
the bonds are at 460, not 6.
they rarely trade...just
like the shares,.
will there beanother chapter11 filing
or will revenue stabilize and the
share price rise??
the new boss sounded quite good.
the numbers were quite bad.
down went the price of the shares.
but really, no one bought or sold
$500,000 total sales/purchases
and it came right back up.
just wish carlyle or kkr would offer to purchase
80 million shares at $7. and the banks extend
their loans for four more years
then buy canada's yellow
we and they would all make a lot of money
Quarterly earnings will be out in fifteen days, but difficult to decipher as full of special expenses.
My question for you: how can the stock be worth $100 million when its behind $300 million in bonds
now selling for 45% of face value..............its my question for me too.