ELNK net asset value consideration stands around $8... For the third quarter 2011, ELNK had $910.52 million in long-term debt and lease obligations and $36.18 million in tangible shareholders’ equity. Long-term debt stands at $910 million with ITC^DeltaCom senior secured notes due April 2016. Capital lease obligations for payment up to the year 2015 average out to being $3.42 million. Aside from the portion of current long-term debt due (ample cash to cover the near maturing debt), the amount of debt incurred due the acquisition poses a large enough margin for error to allow the newly acquired businesses ample time to prove their soundness. Despite the changes in capital structure, ELNK net debt leverage ratio and gross debt leverage ratio remain relatively low against peers like TW telecom (TWTC) and Level 3 Communications (LVLT).
Disclaimer: The specific securities identified and discussed should not be considered a recommendation to purchase or sell any particular security. The commentaries are for informational and educational purposes only. Rather, these commentaries are presented solely for the purpose of illustrating my investment approach. These commentaries contain my views and opinions at the time such commentaries were written and are subject to change thereafter. Under no circumstances should a person act upon the securities mentioned without first consulting an investment adviser as to the suitability of such investments for his specific situation. These commentaries may include “forward looking statements” which may or may not be accurate in the long-term. It should not be assumed that any of the securities transactions or holdings discussed were or will prove to be profitable. Past performance is no guarantee of future results.
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