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.

Non-Tech : Hvide Marine HMAR - High Growth, Undervalued -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (221)	1/30/1998 10:19:00 PM
From: Thomas C. Donald	Read Replies (1) \| Respond to of 547

HMAR's Preferred Securities: On June 24, 1997, the Company completed a private offering (the "Private Offering") of 2,300,000, 6 1/2% Trust Convertible Preferred Securities (the "Preferred Securities"). The Preferred Securities were issued by Hvide Capital Trust (the "Trust"), a 100%-owned subsidiary of the Company. The Trust exists for the sole purpose of issuing the Preferred Securities and investing the proceeds from the issuance thereof in 6 1/2% Convertible Subordinated Debentures due June 15, 2012 (the "Debentures") issued by the Company. The net proceeds to the Company were $111,550,000 after deducting underwriting commissions. Of such amount, approximately $94.2 million was used to repay principal and interest outstanding under the Company's credit agreement (the "Credit Facility"), and $6.0 million was used to repay other indebtedness. The remaining $11.4 million was available for general corporate purposes. Holders of the Preferred Securities are entitled to receive preferential cumulative cash distribution from the Trust at an annual rate of 6 1/2% of the liquidation preference of $50 per Preferred Security accruing from the date of the original issuance of the Preferred Securities and payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, commencing on October 1, 1997. The distribution rate and the distribution and other payment dates for the Preferred Securities correspond to the interest rate and interest and other payment dates for the Debentures, which are the sole assets of the Trust. The Preferred Securities are convertible, beginning September 25, 1997 and prior to the maturity date of the Debentures or, in the case of Preferred Securities called for redemption, prior to the close of business on the business day prior to the redemption date, at the option of the holder into shares of Hvide Class A Common Stock at the rate of 1.7544 shares of Hvide Class A Common Stock for each Preferred Security (equivalent to a conversion price of $28.50 per share of Hvide Class A Common Stock), subject to adjustment in certain circumstances.

To: Grommit who wrote (221)	1/31/1998 4:58:00 PM
From: scott mcdowell	Respond to of 547

hmar is recomended in this weeks barrons roundtable.

To: Grommit who wrote (221)	1/31/1998 5:00:00 PM
From: Thomas C. Donald	Read Replies (3) \| Respond to of 547

Grommit: HMAR's 3Q97 statement showed $47 million in long-term debt. Since then we have had the Bay acquisition for perhaps $20 million (my guestimate) and the IMS and Selat acquisitions for $56 million, bringing the total long term debt to $123 million. According to Raymond James, the debt is $138 million. Close enough; James may be also counting $6 million in obligations under capital leases. The $111 million in obligations associated with the preferred stock are not due until 2012, so that issue is irrelevant (except to Oppenheimer). I still don't see how Oppenheimer came up with $310 million. 111 plus 138 is only 249. Given its exaggeration of the debt and focus on the debt, could Oppenheimer possibly have a hidden agenda? Oppenheimer itself estimates that HMAR's cash flow (which could be used for debt repayment or new investments) will be $81 million in 1998 and $88 million in 1999. This would allow HMAR to comfortably repay all of its current debt in less than two years. No problem here! What am I missing?