$PNOW Blog out, plans to eliminate debt through De
Post# of 145152
Posted On: 03/01/2016 11:23:39 AM
$PNOW Blog out, plans to eliminate debt through Debt Repurchase Program!
http://www.purenow.solutions/nearly-halfway-to-freedom/
Pure has chosen to achieve this action through its Debt Repurchase Program. In initiating a securities buyback plan, management sought to essentially replace toxic debt with smart and responsible capital.
Some may downplay this action, suggesting, “It’s the same debt.”
Well… to the layman, this may seem true in some ways, as we will still have minor debt on the books. But, let’s take a closer look at this:
* At $1.00 of debt (legacy debt), with over 10 years of accrued interest, we suddenly see that $1.00 debt obligation become $2.20 (without penalties)
* That’s $2.20+ (legacy debt)
* Through our debt repurchase program, we renegotiate the $2.20 legacy debt with the existing noteholders, for a full payout. We then negotiate a financing with a new long-term investor for $1.00 (new debt). We use the new debt of $1.00 to take out the renegotiated legacy debt in FULL
* That’s $1.00 vs. $2.20… This equates to a debt reduction of over 50%
* Plus, our current terms with the new long-term investor offers us a 33% savings on the annual interest.
In other words, our new debt obligation has no legacy cost (penalties, fees), much lower interest rates and boasts the fundamentals that are fully supportive of building a company’s long-term growth; bringing us Halfway to Freedom.
http://www.purenow.solutions/nearly-halfway-to-freedom/
Pure has chosen to achieve this action through its Debt Repurchase Program. In initiating a securities buyback plan, management sought to essentially replace toxic debt with smart and responsible capital.
Some may downplay this action, suggesting, “It’s the same debt.”
Well… to the layman, this may seem true in some ways, as we will still have minor debt on the books. But, let’s take a closer look at this:
* At $1.00 of debt (legacy debt), with over 10 years of accrued interest, we suddenly see that $1.00 debt obligation become $2.20 (without penalties)
* That’s $2.20+ (legacy debt)
* Through our debt repurchase program, we renegotiate the $2.20 legacy debt with the existing noteholders, for a full payout. We then negotiate a financing with a new long-term investor for $1.00 (new debt). We use the new debt of $1.00 to take out the renegotiated legacy debt in FULL
* That’s $1.00 vs. $2.20… This equates to a debt reduction of over 50%
* Plus, our current terms with the new long-term investor offers us a 33% savings on the annual interest.
In other words, our new debt obligation has no legacy cost (penalties, fees), much lower interest rates and boasts the fundamentals that are fully supportive of building a company’s long-term growth; bringing us Halfway to Freedom.
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