I want to know how the FCUK crummy POS companies running low margin operations on incredible leverage with no equity to speak of get deals like this:
yahoo.brand.edgar-online.com
On February 27, 2007, TSI, LLC entered into the $260.0 million 2007 Senior Credit Facility... As of December 31, 2008, TSI, LLC had $181.8 million outstanding under the Term Loan Facility. Borrowings under the Term Loan Facility will, at TSI, LLC’s option, bear interest at either the administrative agent’s base rate plus 0.75% or its Eurodollar rate plus 1.75%, each as defined in the related 2007 Credit Agreement. The interest rate on these borrowings was 3.7% as of December 31, 2008. The Term Loan Facility matures on the earlier of (a) February 27, 2014 or (b) August 1, 2013 if the Senior Discount Notes are still outstanding. TSI, LLC is required
A FIVE YEAR LOAN AT 3.7% ?!? These guys have NO equity and operate in a notoriously low margin business. The bankers who give low quality sweetheart deals like this should be imprisoned. And the FDIC should be all over their hides for writing garbage loans like this that will end up put to the taxpayer. If they had to arrange their financing at anything approaching a fair market rate, they'd by BK already.
Let me guess - the banker who arranged the deal gets VIP treatment at one of their clubs.
EDIT: I did at least see that their zero-coupon bonds will actually convert to forced interest payments next month. That's good for cash flow - NOT:
On February 1, 2009, our Senior Discount Notes will be fully accreted with an outstanding balance of $138.5 million. Semi-annual cash interest payments of $7.6 million will be required commencing August 1, 2009. From January 1, 2009 through February 26, 2009, we paid $5.4 million for an additional 2.0 million shares of common stock.
DISCLOSURE: short some, considering more.
`BC |
