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sts66

10/19/18 2:17 PM

#3840 RE: DewDiligence #3828

I can't believe they initiated a div this quickly either - I think LG wanted to stick it to the shorts, has mentioned that IIRC - backfired so far, market appears more concerned with that tiny miss on estimated earnings - I bought more this morning on the dip.

winchem21

10/19/18 8:46 PM

#3851 RE: DewDiligence #3828

Dividend will cost ~$60M/year.
-Recent 2020 debt payoffs cut interest by $10M
-Pending 2021 payoff pf the 4.875% $124.2 M would add another ~$6M annual interest savings
-Another $25M freed up from decrease in HBI investment in 2018, does not appear to affect '19 needs

For 2019, the dividend will only require $20M in addition to these other savings.

This appears to be a conservative move, one unlikely to seriously affect HBI investment needs or to threaten capability to make a major Nashwauk move (which is coming..).