Mon, Jan 26, 2015, 12:21 AM EST - U.S. Markets open in 9 hrs 9 mins

Recent

% | $
Quotes you view appear here for quick access.

Maxcom Telecomunicaciones S.A.B. de C.V. Message Board

nuljava75 44 posts  |  Last Activity: 1 hour 1 minute ago Member since: May 19, 2011
SortNewest  |  Oldest  |  Highest Rated Expand all messages
  • Reply to

    On this loan

    by zekeabooba 8 hours ago
    nuljava75 nuljava75 1 hour 1 minute ago Flag

    are people referring to the text below? my first thought is this was entered with subsidiaries. what is the relationship in terms of who is backing this loan - is it actually the entity VGR itself or the other sub companies? also unless my math is incorrect, the actual interest rate is pretty stellar/low on this development. i have seen many companies raising new debt or capital and paying hundreds of basis points more even in this interest rate environment.

    so could this be possibly a combo of the fact that its pertaining to the subsidiaries and/or they got such a low interest rate - so there are basically some strings attached?

    "The Credit Facility contains customary affirmative and negative covenants, including covenants that limit Liggett's, Maple's and their subsidiaries' ability to incur, create or assume certain indebtedness, to incur or assume certain liens, to purchase, hold or acquire certain investments, to declare or make certain dividends and distributions and to engage in certain mergers, consolidations and asset sales. The Credit Facility also requires the Company to comply with specified financial covenants, including that Liggett's earnings before interest, taxes, depreciation and amortization, as defined under the Credit Facility, on a trailing twelve month basis, shall not be less than $100 million if Liggett's excess availability, as defined under the Credit Facility, is less than $20 million. The covenants also require that annual capital expenditures, as defined under the Credit Facility (before a maximum carryover amount of $10 million), shall not exceed $20 million during any fiscal year. The Credit Facility also contains customary events of default."

  • Reply to

    Terrible Loan Terms?

    by jackrussellguru Jan 21, 2015 7:51 AM
    nuljava75 nuljava75 10 hours ago Flag

    this is perplexing. they have stellar profit margins. a ton of cash. and annual revs are greater than total outstanding debt. what am i missing here?

  • nuljava75 nuljava75 Jan 24, 2015 7:49 PM Flag

    thanks catch83sails - same to you as well.

  • nuljava75 nuljava75 Jan 24, 2015 7:48 PM Flag

    i hear you. that number crunching of mine was pretty close granted i did not get down to the exact number of duration days remaining vs. ytm calc. but i still think that when you are contrasting a corp with a definitive holding period vs. a perpetual preferred that you could be holding for who knows how long considerations have to be made relative to your investing disposition. i.e. if you are all in cash then you probably would not be concerned with variable.

    bottom line is glad to see you got some D that low. i am really kicking myself for not stepping in on that tremendous walk down on big volume. whats even more irritating is there was allot to eat there shares wise.

    normally the D's as you know have wider spreads and are not terribly liquid. so if you want to get in with size you are chasing the ask and it keeps getting pulled from you. but on that big volume day there were allot of shares to be had between $19-$23 range. timing is everything.

    by getting those at $23 you should have a really nice yield going forward now. nice.

  • nuljava75 nuljava75 Jan 23, 2015 9:35 PM Flag

    cath83sails - correct the yield on the bonds was lower today because there was an uptick on them as well.

    glad to see the preferred shares have such a dramatic rebound. to answer your other question i think in this case the preferreds came down to such an insanely low spread multiple vs. yield coupled with clear panic selling yesterday on big volume i have to crunch numbers again.

    eventhough the preferreds are a 100% perpetual position i dont think its necessarily fair to completely negate the potential spread between face value vs. like yesterdays price when D shares were at $19. all you could eat there on a ton too on big volume. when you have face value of $50 and an asset trades that low, there is reasonably more to consider because again -- based on bond price action this company by no means is in dire circumstances.

    if the bonds were trading 40-50 handle that would be a different consideration entirely. you definitely need to track the bonds for potential leading indicator. also the preferreds are great in this situation because they are 100% ROC. so that means no implication on income stream tax side. and if you have carry forward losses, you can basically utilize the divi which will count as cap gain whenever you sell the position against it.

    hindsight being 20/20 it was really stupid of me not to scoop up common yesterday. i should have known GE would do something like he did this morning. unlike most companies that just sit on their hands and watch market cap equity get sucked into oblivion these guys have proven in the past they come out and try to get ahead of this types of situations.

  • nuljava75 nuljava75 Jan 23, 2015 9:27 PM Flag

    thanks for your post. appreciate it. any thoughts as to what happens in 2016 with the bank debt or the bonds in 2017? i do believe with the simultaneous merger and BK, the proverbial worst is behind no?

    i have only witnessed one company get into big trouble shortly after a ch 11 BK and that was Saratoga resources. several years ago they were forced into ch 11 reorg BK and emerged but the bond holders made out 100%. but now only a few years later bonds are trading 25 cents on the dollar. its a micro cap oil company so by no means is this meant to be a comparison here.

  • nuljava75 nuljava75 Jan 23, 2015 9:25 PM Flag

    an important part of this dialogue would be realize that these bonds have an RR of 6 which means in a binary worst case scenario type event you would not recover much of your investment capital. so quite often the common stock offers the best risk reward in terms of if the stock shoots up dramatically in price where the bonds have limited upside.

    but as a debt trader i am very interested in these bonds. only a few months ago they were trading 75 handle vs. now at 40 handle.

    with the simultaneous BK and merger development i am really curious to hear potential scenarios from astute posters on this board. the bonds are really worth considering when you see them trading at 40 cents on the dollar. one good thing about this company is yes they do have a ton of debt but they also have insane revenue numbers as well. so servicing the bonds is not going to be an issue.

    the big two events will be what happens in 2016 with the bank debt and what happens with the 2017 sub debt?

  • Reply to

    Why the bonds dropped

    by don_t_panick Oct 26, 2014 12:17 PM
    nuljava75 nuljava75 Jan 23, 2015 3:41 PM Flag

    don_t_panick - any updates or thoughts now on the 2017 bonds? they were trading as high as 75 handle only a few months ago. now offering at 40 handle.

  • nuljava75 nuljava75 Jan 23, 2015 3:09 PM Flag

    found that bloomberg article with the hedge fund manager. they are talking about these 2017 bonds at 40 handle!

    Dex Media Inc. (DXM)’s bonds will more than double in value to trade at par and its shares will jump to as much as 10 times current levels, according to Kyle Bass, whose Dallas-based hedge-fund firm Hayman Advisors LP made $500 million in 2007 betting against U.S. subprime mortgages.

    Dex Media is a small company and a “cheap option,” Bass said today at the Ira Sohn conference in New York. Hayman owns 9.9 percent of the equity, he said.

    Shares of the Dallas-Fort Worth Airport, Texas-based company surged 17.9 percent to $16.17 as of 1:41 p.m. in New York after his comments, pushing its market capitalization to $275.6 million. The company’s $219.7 million of 14 percent subordinated bonds due in January 2017 last traded March 12 at 44 cents on the dollar to yield 41.8 percent, according to Trace, the bond-price reporting system of the Financial Industry Regulatory Authority.

    Dex Media is the combined entity of phone-book publishers Dex One Corp. and SuperMedia Inc., set to merge through implementation of their companion bankruptcy reorganizations approved April 29. Lenders will be paid in full with new debt, unsecured creditors will be fully paid so long as they continue providing credit and shareholders of the two companies will share ownership of the merged business.

    Hayman held 5.9 percent of the equity at the end of last year, the second-largest share of firms that report their holdings, according to data compiled Bloomberg. Franklin Resources Inc. (BEN) held 31.6 percent as of April 12.

    Dex Media will have as much as $175 million in projected annual cost savings and will be able to use $1 billion in net operating losses to offset future income taxes.

  • greetings - anyone out there trading debt knows that it is slim pickin's out there right now with respect to high yield. over a year ago i had been tracking the DXM story/merger. i was surprised to see the 2017 bonds still trading at 40 cents on the dollar.

    the equity side looks pretty strong with the stock trading where it is. there was a hedge fund manager with a very large position on the stock side, think something like 8% who was very very bullish on the 2017 bonds once the BK/reorg took place. or perhaps he meant the 1st lien bank bonds that are not publicly traded. i will have to go back and look at that again.

    anyone with any thoughts or insights as to the fate of these bonds, please chime in. they redeem in only nearly 2 years exactly. the ROR would be enormous at 77% per year. are these bonds trading flat or paying interest? is the reorg completely over now? any input greatly appreciated. thanks.

  • nuljava75 by nuljava75 Jan 22, 2015 11:37 PM Flag

    this board has some astute and great posters. please don't take umbrage to my inquiry as i surmise from the 52 week pps range some of you are not happy with the what looks like $2.14 proposed buyout. its showing up right now as the #1 arb opp on m&a platforms due to the wide spread between current pps vs. proposed take out price.

    any thoughts or revelations. i can imagine some of you wanted much more per pps. do you think this deal will actually close or get allot pushback from holders? thanks in advance.

  • nuljava75 by nuljava75 Jan 22, 2015 11:26 PM Flag

    any thoughts or input as to the probability percentage this deal gets done? still a decent amount of coin on the table here to be had vs. take out price. any guesses as to when this closes? thanks.

  • Reply to

    Why the prefd plunging so bad??

    by targeton1 Jan 22, 2015 3:10 PM
    nuljava75 nuljava75 Jan 22, 2015 10:51 PM Flag

    no in reality the fact that these bonds are trading at an 18% yield is not all that terrible. they have an RR of 6 so the fact that they are trading at a 27% discount is actually pretty good.

    an RR of 6 means in a binary type event worst case scenario you don't get much investment capital back. so these types of bonds that are unsecured or non-lien typically will get crushed if things are really that bad. price action across the board in this sector is as such.

    any bond in this space especially micro cap is taking lumps and bonds are trading same pps/yield spreads. don't get caught up in the price action of the preferreds.

    this merely reflects the proper capital structure. preferreds can not yield more than bonds hence reason they are coming down. it was a great arb opportunity missed by most. i am sure some pros mades some coin here.

  • Reply to

    Plunging Pfd C

    by targeton1 Jan 22, 2015 3:12 PM
    nuljava75 nuljava75 Jan 22, 2015 10:26 PM Flag

    this is one the greatest arbs i have witnessed in along time. the preferreds were grossly over priced. the price action you are seeing the last two days is mainly due to capital structure. back in early december when GE was on kramer's show and they were chatting up the C shares; pps was trading at face value.

    meanwhile the 2020 corp bonds were trading at a whopping 20% discount to par. and there is only a difference of 75 basis points between the two on their prospective interest rates.

    so the bonds had a huge yield compared to where the C & D & E shares were trading. in theory preferreds always trade at a higher yield then bonds do, again because of capital structure i.e. bonds preferreds.

    so now with the bonds trading at 18% yield, the preferreds are trading where they should be relative to that number. the good news is that today the bonds held firm and barely down ticked one point. so hopefully with tomorrow morning's conference call this price action can reverse a little bit.

  • Reply to

    Why D so low compared to C ?

    by winmore_98 Jan 21, 2015 2:28 PM
    nuljava75 nuljava75 Jan 22, 2015 10:22 PM Flag

    the disparity in large part is due to the fact that there is a whopping 250 basis points difference between the C shares vs the D shares with respect to the coupon interest rate. the D shares will always trade at a much more dramatic spread on pps vs. C. but if you actually take the annual divi and divide by the pps you will find that the annualized yield is always pretty close to one another either at par or within 100 basis points.

  • Reply to

    all time new low today $18.80

    by nuljava75 Jan 14, 2015 12:52 PM
    nuljava75 nuljava75 Jan 22, 2015 10:21 PM Flag

    MHR-PC is preferred stock. they have three different classes. C, D, & E (comes with warrants/convertible option) the warrants you refer to i have not been familiar with in terms of tracking for several years now. if i come across anything will let you know.

  • nuljava75 nuljava75 Jan 22, 2015 10:01 PM Flag

    apparently you do. total yield to maturity on bonds factors in discount to par. so take 100 - 72.50 = $27.50 but don't forget multiplier of 10X because bonds actually trade at intervals of $1000 or in this case, one MHR bond is $725.

    so assuming hold to redemption you get a cap gain of 275. amortize that out over 5 years and add to the annual interest payment from the coupon of 9.75%, divide by out of pocket cost per bond of $72.50 and you get an annualized return of over 18%. whenever bonds are quoted at a discount to par, ytm is always calculated in this fashion.

    the reason why you cant really do this with preferreds is because its a perpetual holding. there really is not a definitive call date or quantifiable duration period. take for instance the C shares. there has been whispering of that being called for several years now.

  • nuljava75 nuljava75 Jan 22, 2015 9:53 PM Flag

    the MHR 2020 corp bonds with 9.75% coupon are trading at 72.50 handle vs. 100 par so they are trading at a 27.5% discount. annualized yield puts that around 18%ish.

  • Reply to

    Why the prefd plunging so bad??

    by targeton1 Jan 22, 2015 3:10 PM
    nuljava75 nuljava75 Jan 22, 2015 4:04 PM Flag

    bonds preferreds stock

    bonds are always 1st priority. so when you see preferreds yielding less its a big arb opportunity. if you go back to that Kramer interview when they were talking about the preferreds, the C shares were trading near face value. meanwhile the bonds were at a near 20% discount. it just made no sense. it took about a month, but now pricing is aligned.

    at least today looks like with the volume it flushed out allot of sellers on the preferreds. the bonds actually held up and barely ticked down a single point.

  • Reply to

    Why the prefd plunging so bad??

    by targeton1 Jan 22, 2015 3:10 PM
    nuljava75 nuljava75 Jan 22, 2015 3:46 PM Flag

    yes - the bonds are yielding 19%. in theory preferreds can not yield less than the bonds. this was a huge arb opportunity for weeks to short the preferreds and long the debt. the preferreds had been yielding less than the bonds.

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.