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To: IndioBlues who wrote (45054)5/19/1999 7:34:00 PM
From: Linkdog  Read Replies (1) | Respond to of 95453
 
FWIW and just for fun - here is my new company - Diamond Falcon

(of course all numbers are just back of envelope but you'll get the idea)

Cash
DO ~650M
FLC ~1.35M (includes 500M of project financings)
Total $2 Billion

Debt
DO 400M
FLC 3.2 Billion (includes an additional 500M for project financings)
Total $3.6 billion

(assumes all other expenditures for completition of FLC cap program paid for out of combined casf flow)

Net Debt in a stock for stock deal = ~1.6 billion

Approx interest cost per year $140 Million

Number of Shares outstanding DO current 270M (DOs current 140M+130 new or .67 for each of FLCs 192M)

Low and high end earnings of combined assets ~ 400M to $1.4B)

EPS - $1.48 - 5.18

Debt service coverage becomes a non-issue for this company
Where else could DO get this kind of growth
Takes risk off the table for FLC holders
Company becomes the undisputed leader in a consolidating industry

Comments?