Wednesday, January 17, 2007

massive debt fueled dividend...and a hidden warning in the fine print...wall street at work...

the latest s&p debt rating rating from a convertible in june 2006 was a bbb+. at least investment grade. it will be important to see what the agency will say to this debt fueled dividend (when at the same time fundamentals are worsening .... just watch the write offs and the warning for 07.) i´ll bet a downgrade is in the cards and one can hope that they hold the bbb-. if management hasn´t cleared this point with the agencies it is clear that they are really desperate to pump the stock...... stock is up pre opening 9% to $22,70 (read the update at the bottom and try not to pu...e) das letzte s&p rating war immerhin noch ein bbb+.bin gespannt was die agenturen jetzt sagen. bin mir sicher das ein downgrade unvermeindlich ist. sollte das management das im vorwege nicht abgesprochen haben und ein rutsch in den junk bereich kommt dann kann man sehen wie verzeifelt die sein müssen um den aktienkurs zu pumpen. (bitte das update weiter unten lesen und den kopf schütteln)

Health Management Associates set plans Wednesday to return $2.4 billion to shareholders through a $10-a-share special dividend.

HMA guided sharply lower for 2007, citing tighter guidelines for recognizing and writing off revenue tied to uninsured patients. It expects to make 61 to 71 cents a share on revenue of around $4.1 billion. Analysts were looking for a profit of $1.34 a share on revenue of $4.32 billion.

HMA said the fourth quarter will be hit by a bad debt charge of $200 million, or 50 cents a share, as the company writes off the value of care provided to uninsured patients.

HMA will recapitalize its balance sheet through $3.25 billion of new senior secured credit facilities, including the refinancing of amounts outstanding under the company's current revolving line of credit. The $3.25 billion senior secured credit facilities, which are pre-payable without penalty, consist of a seven-year $2.75 billion term loan and a $500 million six-year revolving credit facility (expected to be unfunded at closing), which will be secured by a portion of the company's assets. HMA's $400 million of 6.125% senior notes and $588 million of convertible subordinated notes will remain outstanding; however, the 6.125% Senior Notes will be secured pari passu with the senior credit facility

The company said it doesn't expect to buy back any stock, "except in the event of significant undervaluation" of its shares. It suspended its 6-cent quarterly dividend.

looks like there is no buyout firm that wants to take hma private... like they did with the $33 billion takeover for hca. sieht so aus als wenn sich keine buyout firma findet die hma von der börse nimmt...... wie bei dem giganten deal von hca für $33 billion geschehen.

UPDATE: Fitch Cuts Health Management Ratings

Fitch cut the company's issuer default rating to "BB-" and its newly secured senior notes to "BB." Both had been at "BBB+" ratings.

Labels: , ,


Post a Comment

Links to this post:

Create a Link

<< Home