Friday, May 26, 2017

The Bon-Ton Stores, Inc. (BONT)

Jenna Loren Giannelli, Citigroup Inc, Research Division - Director and High Yield Credit Retail Analyst
Okay. And then just one final one. I know you affirmed the guidance for the debt repayment of $20 million to $30 million this year. Are you anticipating that to just be sort of regular way debt repayment, or would you anticipate the possibility of maybe buying back -- bonds back in the open market, given your liquidity position?

Nancy A. Walsh, The Bon-Ton Stores, Inc. - CFO and EVP
At this point, we are not contemplating any repurchase of the debt. I think we really need to focus on the business and make sure we maintain our liquidity to support the business. But we continue to evaluate other, say, lease-back transactions and things that might add additional cash for us. But at this point, this is really coming out of the operations.
BONT has an 8% note due June 2021 that is trading in the low 40s - a yield to maturity of ~37%.

1 comment:

Joe Dawson said...

Lay and pray is not a viable strategy for the equity. That credit will file.