Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: bruwin who wrote (62240)	7/25/2019 10:44:30 PM
From: Elroy	1 Recommendation Recommended By E_K_S Read Replies (2) \| Respond to of 78464

Lets see - a few thoughts on your comments on UAN. Unfortunately still no decrease in Interest (Debt) Expense From the call today, most of their high interest expense debt became callable in June, so they may refinance and get a lower rate going forward...... Our long-term gross debt and finance lease obligations of $631 million including current portion remains unchanged. As a reminder, the majority of our gross debt position is comprised of our 9 1/4% senior notes due 2023. These notes became callable in June of this year at 104.6% of par. Q: on the debt refinancing. I note the bonds did become callable in June. Just any color you could provide on that, how you've looked at the market opportunity to refinance there? A: So we've been evaluating the market, the rates that are available to us and we'll look to see what the Fed does next week and continue the discussion with our Board around the call premium versus the rates available and make a decision in the future. ----- There revenues are highly erratic. Sometimes the manufacturing plants needs one month repairs, so there goes 1/3rd of quarterly revenues. Other times the price of the fertilizer they sell goes up 50%, so sales go up 50% with little change in costs. Recently these trends are in their favor, that's apparently why distributions have resumed. The give about zero forward financial guidance, so you've gotta base your opinion on the feel of things more than on their detailed forecasts......it seems like the fertilizer business is trending up.