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Non-Tech : Imperial Sugar (IPSU)
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To: Patentlawmeister who wrote (107)2/14/2003 5:54:21 PM
From: Crossy  Read Replies (1) of 121
 
Imperial Sugar (IPSU) - 10Q out today
Great news - can only encourage you to read the fine print

sec.gov

quite significant and valuable info. Major achievements reached..

1) If you take out all the non-recurring extra items, Imperial recorded positive operating earnings from ordinary operations of $465k or $0.04 (includes D/A but not interest payments)

2) refinancing decreased total debt levels significantly - down to $38m in interest bearing debt. The refinancing was at Libor + 250-300bp. at the same time the firm entered into a swap notional of $25m (seems to be WAC over the lifetime of term loan) for LIBOR vs. 2.5% fix. Total financing costs thus between 5% and 5.5%. In the past IPSU had interest payment costs around 9-10%. Total Interest payment on term loadn, with undrawn revolver (as now) thus around $2m per YEAR ! which would be 1/10 of IPSU's former interest exposure of around $20m

3) Figuring in the new interest rate and debt exposure, Imperial is now at breakeven with its remaining operations after they sold off DCB to Hormel. Risk was reduced considerably. Survival and optimization of the company should yield nice benefits. Going forward SG&A costs should be reduced again as the impact of professional fees for restructuring, refinancing and asset sale & retention initiatives should no longer burden the company.

4) Book value now around $16 per share. Market price around $6. what a discrepancy. Funny - not even a company PR..

best rgrds
CROSSY
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