I was going to do more research but thought I could defer to the collective wisdom of our board.
$4-6 EBITDA per Share.
$2.50 Share Price.
Debt $3.2B.
Announced Asset Sale of $2.1B.
The crux of this problem is are the cash-flow real? It's an asset light business model that sells internet to large corporations, hence how can they not generate a cash-flow unless there's a huge fraudulent scheme going on? They are currently paying an interest expense of $123M through their operating income. As a business they effectively rent assets and resell it as a bundle to corporations that have a footprint globally, so they can work with one vendor. Assuming EBITDA is only $150M versus $300M, it still trading at less than 1x EBITDA.
Maturities are not bad - basically $30M for five years and $3B after five years.
Sequoia and other value investors are invested in this - typically a red flag for me, but it seems an empire building company that is going through a transition. Bankruptcy is in the air too, but not sure how that could be a possibility. The $2.1B sale is not impaired - it's infrastructure assets of networks and data centers, which are still useful, if not more useful than it was when it was announced.
It seems like it could be a multi-bagger or leave equity holders holding the bag. I'll report back when I see a silver lining or what the market is not seeing.