We are engaging with commercial banks regarding the debt component of the recapitalization, and anticipate completing the transaction around the end of the third quarter or shortly thereafter.
Of course as indicated in our press release issued earlier today, this plan is contingent on our ability to successfully access the commercial bank market and raise the new debt as well as a variety of other factors described in our press release. Please refer to the press release for a full discussion of those factors.
Raising $75 million to $100 million in debt will lever the company to about 1 to 1.5 times adjusted EBITDA. We believe this level of debt is very manageable. Even after paying out the cash dividend, we will still have about $30 million in cash on the balance sheet.
Additionally, we will continue to have significant capacity to pursue acquisitions, if we identify an asset we would like to acquire. Also we anticipate securing a revolving line of credit that will remain undrawn unless needed at some time in the future.As also mentioned in our press release, the Board of Directors has authorized the company to repurchase up to $50 million of stock in the open market. The stock repurchase program will expire in three years. We do not currently have any plans to repurchase any stock under this program. But we believe it make sense to have this authorization in place to allow us to repurchase shares opportunistically if price levels become attractive. I want to emphasize however, that in the near-term, it is our intention to pay the special one-time cash dividend and not repurchase shares.Read the rest of this transcript for free on seekingalpha.com
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV