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  #1  
Old 08-08-2016, 04:13 PM
Tito Tito is offline
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Default Canada’s Xplornet Said to Draw Interest From Providence, Bain

http://www.bloomberg.com/news/articl...rovidence-bain
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  #2  
Old 08-08-2016, 08:29 PM
buttitchi buttitchi is offline
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Would be interesting to see a public offering from Xplornet. Mainly to see how much taxpayer welfare they have received in regards to the monopoly secretive contracts, and how much money they haemorrhage every quarter.


Quote:
Providence Equity Partners, Bain Capital, and Abry Partners are weighing bids for Woodstock, New Brunswick-based Xplornet, which offers high-speed internet service to rural Canadians, the people said, asking not to be identified because the information is private. The company is valued at more than C$1 billion ($758 million), the people said.
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  #3  
Old 08-10-2016, 11:36 AM
Brad R Brad R is offline
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Great. That's all we need, some venture capitalist to come in, load up the company with debt, strip the assets, and sell it off (perhaps via IPO).

Sorry, I'm in a cynical mood today.
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Old 08-13-2016, 07:29 PM
ret ret is offline
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Apparently these future buyers never heard of google.
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  #5  
Old 09-28-2016, 11:06 PM
buttitchi buttitchi is offline
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Writeup on how much Xplornet owes, by partial details an investment bailout package. So the plan is to bring the today debt under control and make the company more appealing to an IPO or sale.

Article ignores millions of dollars in taxpayer welfare Xplornet gets yearly.

http://www.globeinvestor.com/servlet...3/RBCDXPLORNET
To pay for expansion and retire certain existing debt that pays 13per-cent interest and matures next year, Xplornet is in talks with lenders on a $335-million (U.S.) package of loans that sources say are expected to carry interest of 7.5 per cent. Moody's put out its first report on Xplornet on Tuesday, awarding a noninvestment-grade B3 rating.

Investment bankers working with the company say once the debt financing is in place, the company plans to run a dual track process to raise additional capital by either going public or selling all or part of the company to a private equity investor. In July, Bloomberg reported that at least three U.S. private-equity firms are circling the company.

The 12-year-old company has incurred significant debt while investing in infrastructure, spectrum licences and expensive leases for satellite capacity, and Moody's says its "aggressive" ratio of debt to EBITDA (earnings before interest, taxes, depreciation and amortization) stands at almost eight times.
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Last edited by buttitchi : 09-28-2016 at 11:10 PM.
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  #6  
Old 10-16-2016, 04:38 PM
Brad R Brad R is offline
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Thanks for the link. A lot of Xplornet's finances are pretty opaque, but the debt to EBITDA ratio of 8 raises eyebrows.

http://www.readyratios.com/reference...tda_ratio.html
Quote:
The debt/EBITDA ratio is popular with financial analysts because it relates the debts of a company to its cash flows by ignoring non-cash expenses. Ultimately it is the cash flows (as opposed to profits) that will be used to pay off debts. Entities in normal financial state show debt/EBITDA ratio less than 3. Ratios higher than 4 or 5 usually set off alarms because they indicate that a company is likely to face difficulties in handling its debt burden, and thus is less likely to be able to raise additional loans required to grow and expand the business.
And there's this from the Globeinvestor article:
Quote:
Mr. Wolfe cautioned that Xplornet is cash-flow negative - due to its heavy capital investment program and low average revenue per user - but said it could turn positive in 2018 as spending requirements lessen and "the network reaches critical mass."
It's probably a good thing that they're replacing high-interest-rate debt with lower-interest-rate debt, but it sounds like they're also increasing their debt load. I hope they're still in business in 2018.
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  #7  
Old 10-19-2016, 07:32 AM
dave_ca dave_ca is offline
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They are a large employer in Woodstock, NB - my home town. I hope they can turn cash flow positive very soon as the increasing debt load they carry will make that increasingly more difficult.
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  #8  
Old 10-20-2016, 09:28 AM
Brad R Brad R is offline
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Yeah. I may occasionally gripe about Xplornet, but they're still better than all the other alternatives available to me. And I get better customer service from New Brunswick than I ever got from the Philippines (or wherever HughesNet outsources their customer service).
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