I read the schedule of dividends the Board approved and notice the last dividend was missing and that the final dividend could be paid with common shares. I believe it was in a PR statement and I would have to try to find it again. There is a lot of confusion around the CLV and the Class A preferred, they are the same and when the conversion is done, the shares of CLF will increase and the Class A preferred will disappear from the balance sheet. The whole transaction will improve the balance sheet as $50 million in CLF shares will be issued and $700+ million of Class A preferred will be gone. The whole CLV thing was great for CLF, not so much for CLV holders and does not dilute the balance sheet.
If you are talking about Henny Youngman's use of it, then I am going to have to check with walker section of the senior center...
All we need to see is CLF posting quarterly profits with all of this dead weight removed. Growth will come as commodity prices recover in the future.
I hope your mother-in-law is fine, my dad had a stroke and his life changed big time. I lived in NC for 12 years and traveled all over the South, some of the best bumper stickers in the US. I really enjoyed the people in the South and would have loved to stay if it wasn't for the humidity and bugs that my wife hated. For me, if it wasn't for the humidity and bugs we would not have anything to drink to.
We spend about $3600 a year on groceries at our local Kroger store that is 5 miles from home. Don't buy processed and packaged foods, stay away from organic and free range meats, drink water and coffee, grind my own meats from roast I get on sale and keep our portions small to control my weight. I do consume a bottle of bourbon a month.
I am not a health food nut, just don't care much for yogurt and tofu. Had a free range chicken once, at least I think it was as I hit it with the car as it was ranging across the road. I use to hunt and then realized that venison was costing me about $400 a pound. I could shoot a deer or bear out my back door, the ending cost would still be $50 a pound.
As I see it, it is not where you shop, it is how you shop. If I had a store within walking distance, that is where I would go.
Many people don't realize that when employees are given options, they have to pay the IRS a withholding tax on the difference what they pay for the shares and what the price of the stock was on the day the option was exercised.
Good point. CLF should return to profitability which will allow them to gain favorable terms to refinance. Getting debt down to $1.5 billion they could weather any financial storm.
LG has said their debt is now completely manageable. It was the losses from coal and Canadian operations that was not.
Hoping Mr. Gonclaves outlines the plans going forward. Have a feeling he won't and we will have to wait for Q1 earnings to get an idea what earnings will be without the losing drag. It is in CLF's best interest to keep bond prices low and the bashing media has been a part of LG's master plan to reduce debt.
Look at how much cash is generated from continuing operations with USIO and Asia Pacific. Then look at the drag on that cash from coal and Canadian operations plus the future liabilities from those operations. It is not about cutting liabilities, it is about making money going forward with fewer assets.
OK, that makes sense. If the remaining assets from the CCAA doesn't get them that, annual tax advantages will give them the cash they need without the drag from losing divisions and the reduction of future liabilities.
See you got the 3 thumbs down, you are on point here and that is what should have the shorts worried. Clean up all the junk off the balance sheet and CLF will generating earnings on a regular basis.
The decision to go through the CCAA was all about shedding the $700 million of liabilities, without the CCAA, CLF could have never been able to sell BL for anything close to their liabilities. This whole process is more about making USIO profitable without the drag of losses from Canadian and coal operations. Factor in the gains from tax refunds and the cash generated from USIO, this was the right decision and CLF could reduce their debt to under $1 billion in three years. This would not be possible if they where to hold these assets for a better price and service those liabilities.
If they do get any significant amount from the remaining assets, that would reduce the time it takes to reduce debt below $1 billion by at least 1 year.
The dividend is $17.50 per Class A preferred share or 44 cents per CLV share which is your $12.8 million. However, CLF paid out $25.6 million in dividends in Q3 which is the number I pulled. What is the difference, I don't know as the Class A is the only dividend paying stock they have issued.
I was wrong, the CLV shares is 40 times the number of Class A shares. We are talking about a conversion here, so you should see two entries. One to take shares off the balance sheet and one to replace it. The dilution occurred when the shares were issued when CLF got cash for the sale of the Class A preferred through the issue of the CLV shares. There is no dilution on this conversion.
Now, nowhere on the balance sheet do they list CLV shares, however they do list the Class A Preferred as one share of Class A is equal to 40 shares of CLV. What I expect to see after the conversion is for those Class A shares removed and the CLF shares to increase where the two net each other out. But the savings to CLF is the removal of the last dividend.
In the end, CLF did come out on top, selling CLV shares off the offering for somewhere around $29 and then converting them back for $1.50. That is a $797 million gain and if the Class A is removed, there may be a tax liability here.
From Q1 2013 10Q:
"On February 21, 2013, we issued 29.25 million depositary shares, comprised of the 27.0 million depositary share offering and the exercise of an underwriters' over-allotment option to purchase an additional 2.25 million depositary shares. Each depositary share represents a 1/40 th interest in a share of our 7.00 percent Series A Mandatory Convertible Preferred Stock, Class A, without par value, or Preferred Share, at a price of $25 per depositary share for total net proceeds of approximately $709.4 million , after underwriter fees and discounts. Each Preferred Share has an initial liquidation preference of $1,000 per share (equivalent to a $25 liquidation preference per depositary share). When and if declared by our board of directors, we will pay cumulative dividends on each Preferred Share at an annual rate of 7.00 percent on the liquidation preference. We will pay declared dividends in cash on February 1, May 1, August 1 and November 1 of each year, commencing on May 1, 2013 and to, and including February 1, 2016. Holders of the depositary shares are entitled to a proportional fractional interest in the rights and preferences of the Preferred Shares, including conversion, dividend, liquidation and voting rights, subject to the provisions of the deposit agreement."
These shares were issued and CLF was diluted at the time of issue. The shares issued went up from 142 million to 154 million. Now those depository shares will be removed from the float and replaced by less CLF shares.
Yes, however CLF diluted their shares when they issued the CLV shares. So now they are going to take 29.2 million shares of CLV off the float and add back 26.3 million shares of CLF.
When you pull up CLV and CLF, the shares issued and float is the same.
The net reduction in the float will be around 2.9 million shares.